Gold ​prices dropped over 4% on Thursday, falling for a seventh consecutive session, ‌as the Middle East conflict increased energy prices and ignited inflation concerns, raising expectations that top central banks will keep borrowing costs elevated.

Spot gold fell 4.3% to $4,612.21 per ounce by 1:31 p.m. ET (1731 GMT), ​its lowest level since early February.

"Gold is now a very widely held position for institutional investors ⁠and that has been on the back of the debasement trade over the last year. ​But the foundations of that trade are now weakening," said Daniel Ghali, commodity strategist at ​TD Securities.

"For the near term, we continue to see risk to the downside. There is a very substantial amount of room for gold to sell off while maintaining its bull market era trend support."

Gold is ​prized as a hedge against inflation and geopolitical turmoil, but because it does not generate ​interest, it tends to lose appeal in periods when rates are high.

Nearly all major developed market central banks ‌kept ⁠rates unchanged this week, but emphasized they were ready to curb inflation should the energy shock caused by the U.S.-Israeli war on Iran persist.

Benchmark Brent oil prices jumped above $110 a barrel after Iran attacked energy facilities across the Middle East following Israel's strike on its South ​Pars gas field.

Meanwhile, a ​U.S. official and three ⁠people familiar with the matter said President Donald Trump's administration is considering deploying thousands of U.S. troops to reinforce its operation in the ​Middle East as the Iran war enters a possible new phase.

Analysts ​at SP ⁠Angel said gold has been hit by profit-taking and a stronger dollar, noting that after its strong rally in 2025, it is not surprising to see traders lock in gains to ⁠cover margin ​calls and rotate into fresh trades such as hydrocarbons ​amid renewed volatility.

Spot silver slipped 5.3% to $71.39 per ounce. Platinum fell 3.7% to $1,949.20, and palladium lost 2.4% to $1,440.29.