Gold drops over 3% to $4,123.89 amid U.S.-Iran tensions
Gold prices slid over 3% on Wednesday, hitting their lowest point since March.
The drop comes as tensions between the US and Iran ramped up, making global markets pretty uneasy.
Spot gold landed at $4,123.89 per ounce, with US gold futures for August not far behind.
Traders worry over inflation, possible hikes
The latest flare-up (missile and drone attacks between the US and Iran) has traders worried about inflation and possible interest rate hikes in the US.
In fact, there is now a 66% chance of a rate hike in December, according to CME Group's FedWatch tool.
Meanwhile, May's inflation numbers showed a slower rise than April's, so investors are watching closely for more clues on what the Federal Reserve will do next.
Even with these ups and downs, analysts say things like ongoing inflation and central banks buying gold are still keeping some support under gold prices.