Gold prices fall as Iranian attacks against two commercial ships near the Strait of Hormuz revive concerns over inflation. "Overall, bullion remains rangebound as it attempts to shift from capitulation to consolidation, supported by softer U.S. data and a less hostile dollar and yield backdrop," analysts at Saxo Bank say. "However, with short-dated U.S. yields still signaling a risk of a rate hike later this year, a further easing in rate expectations is needed to support a more durable recovery." In early European trading, New York gold futures are down 0.7% at $4,138.50 a troy ounce. Traders now await the release of minutes from the Federal Reserve's June meeting for further guidance on the policy outlook. (giulia.petroni@wsj.com)