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Gold's price continues to decline as signs of a wider ​Middle East war and rising oil prices fuel inflation concerns and reduce expectations for interest rate cuts this year.

Spot gold's (TVC: $GOLD ) price is currently at $4,751.00 U.S. per ounce, having fallen steadily since ⁠hitting an all-time high near $5,500 U.S. an ounce in January of this year.

The latest drop in gold comes after the U.S. military said it will begin a blockade of all maritime traffic entering and exiting Iranian ports and coastal areas.

The U.S. is establishing a blockade after peace talks held over the weekend failed to bring about an agreement to end the war between the U.S., Israel and Iran.

As a result, crude oil prices are up 8% and back above $100 U.S. a barrel on April 13. The rise in oil has sparked fears of a rise in inflation that could prevent interest rate cuts this year.

As a non-yielding asset, gold's price tends to rise when interest rates move lower.

At the same time, the U.S. dollar has risen to a one-week high, making gold priced in America's currency more expensive for holders of other currencies.

Spot gold's price has now fallen more than 10% since the ⁠Iran war began on Feb. 28.

Futures markets are now pricing in a 16% chance of a U.S. interest rate cut of at least 25-basis ​points this year.

A few weeks ago, markets were pricing in at least two 25-basis point rate cuts from the U.S. Federal Reserve this year, one in June and another in September.

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