Asian markets saw a decline in gold prices in early trading as the US dollar strengthened following the collapse of talks between the US and Iran.

Gold fell in Asian trading this morning, as the US dollar strengthened following the breakdown of negotiations between the US and Iran over the weekend. For investors holding non-dollar denominated currencies, a stronger dollar typically makes precious metals priced in dollars more expensive. Spot gold fell by 1.9% to $4,656.29 per ounce. Furthermore, the failure of the negotiations this morning has caused a surge in crude oil prices, which could reignite concerns over inflation pressures and potential interest rate hikes by central banks, potentially weakening the attractiveness of non-interest-bearing precious metals.