Spot gold fell 0.6% to $4,719.54 per ounce, hitting its lowest level since early April.
U.S. gold futures dropped 1%, reflecting weaker demand for the non-yielding asset.
The dollar climbed to a one-week high, making gold more expensive for international investors.
Rising oil prices intensified inflation concerns, reshaping expectations for central bank policy.
Markets now price a reduced probability of a Federal Reserve rate cut later this year.
Higher interest rates continue to weigh on gold, reducing its appeal compared to yield-bearing assets.
Analysts expect consolidation unless prices break below key support levels near $4,500.
Other metals declined, with silver and platinum falling, while palladium posted modest gains.
