Gold prices fall after hitting a more than two-month high earlier in the session, as fading hopes for a US-Iran peace deal have lifted oil prices and fuelled concerns that inflation and interest rates could remain elevated, Reuters reports.
Spot gold was down 0.4pc to $4,371.92 per ounce by 0855 GMT, after hitting its highest level since June 5 earlier at $4,434.84.
US gold futures rose 0.3pc to $4,430.80.
Yields on the benchmark 10-year US Treasury note have risen to an over one-week high, increasing the opportunity cost of holding bullion.