Gold prices are weakening despite renewed military tensions in the Middle East, as higher oil prices revive inflation concerns, lift government bond yields and strengthen the dollar. Domestic gold (99.99_1kg) closed at 190,810 won per gram on the 2nd, down 2.79% from the previous session, Korea Exchange data released on the 3rd showed. The price was its lowest in about a month, since reaching 190,800 won on the 5th of last month, and was more than 8% below the 208,300 won recorded on the 25th of last month. Gold had advanced through last month as softer U.S. inflation data reduced expectations of Federal Reserve tightening and increased the appeal of the non-interest-bearing asset. That trend reversed after armed conflict between the United States and Iran resumed, with additional U.S. airstrikes followed by Iranian ballistic-missile and drone retaliation. Oil prices rose about 5%, while West Texas Intermediate crude for October delivery moved above $90 a barrel. The U.S. 10-year Treasury yield rose above 4.8% in Asian trading the previous day, and Japan's 10-year yield surpassed 3%. Daishin Securities analyst Lee Kyung-min said the oil-price surge had renewed inflation concerns and pushed up government bond yields, while the CME FedWatch tool put the probability of a rate hike at the September Federal Open Market Committee meeting at 68%. Samsung Futures analyst Ok Ji-hee said the simultaneous rise in oil prices, the dollar index and U.S. Treasury yields had weighed on precious metals broadly. The dollar index stood at 99.724 as of 3:30 p.m. the previous day, nearing 100.