Gold futures fell more than 3.5% on Tuesday, dropping below $4,200 per ounce as the U.S. dollar strengthened.

The decline followed a hotter-than-expected May inflation report, which raised expectations that the Federal Reserve could keep rates higher for longer or even hike again.

Analysts said rising inflation and tighter monetary policy are making gold less attractive since it does not yield interest.

Gold has also been under pressure amid geopolitical tensions in the Middle East, losing about 21% since the conflict began, while silver has fallen around 30%, Yahoo Finance has reported.

The market reaction came alongside renewed U.S.-Iran tensions after a reported retaliatory U.S. strike near the Strait of Hormuz.