Gold fell 2.6% to $4,170 an ounce by 0640 GMT as rising oil prices, elevated U.S. bond yields and concern over persistent inflation renewed pressure on the non-yielding metal. Brent futures climbed 2.6% to $107 a barrel and WTI rose 1.5% to $94 after President Donald Trump rejected an Iranian proposal for a seven-day cease-fire and reopening of the Strait of Hormuz. Higher energy costs can sustain inflation through production, transport and household expenses, reinforcing expectations that the Federal Reserve will maintain restrictive monetary policy after raising its policy rate by 25 basis points to 3.75%-4.00% this month. The latest move followed a broader selloff in which spot gold had fallen as much as 4% to $4,111, while weaker futures positioning, ETF outflows and softer Chinese demand added to pressure. Central-bank purchases and seasonal Indian demand remained potential sources of support.