Gold prices fell in early Asian trading as the U.S.-Iran cease-fire kept inflation concerns elevated, supporting expectations of further central bank rate hikes that could reduce demand for the non-interest-bearing metal. A media report suggesting clearing Iranian sea mines could take up to six months highlights the risk that energy supply constraints and inflation pressures will persist well into year-end, according to NAB's Skye Masters.

Masters, head of Markets Research, noted that U.K. inflation surprised to the upside on fuel and services, pushing markets to price in tighter Bank of England policy. The cease-fire, while reducing immediate geopolitical risks, has not alleviated concerns about prolonged energy market disruptions that could keep inflationary pressures elevated. This dynamic is particularly relevant as central banks weigh additional rate increases to combat persistent inflation.

Spot gold was trading 0.4% lower at $4,726.50 per ounce in early Asian markets. The decline reflects investors' shifting focus from safe-haven demand to the prospect of higher yields on interest-bearing assets as central banks maintain a hawkish stance. With inflation data from major economies continuing to surprise on the upside, the precious metal faces headwinds as the year progresses.