Investing.com -- U.S.-listed shares of gold mining companies dropped in morning hours trading on Thursday, gold prices retreated, pressured by a surge in oil prices that reignited inflation concerns and clouded the outlook for U.S. interest rates.

XAU/USD fell 1.6% to $3,993.64 per ounce. The precious metal faced pressure from inflation concerns related to ongoing tensions in the Middle East and uncertainty surrounding U.S. interest rates.

The uncertainty surrounding Fed's interest rate stance and Iran-US war outcome has kept pressure on gold. While softer inflation would normally weaken the dollar and support bullion by reducing expectations for higher interest rates, renewed gains in oil have raised doubts about whether the recent disinflation trend can be sustained.

Higher energy prices could fuel inflation, reinforcing expectations that interest rates may remain elevated for longer and reducing the appeal of non-yielding assets such as gold.

Among major mining companies, Newmont declined nearly 2% and Barrick Mining fell 1.2%.

South African gold miners also moved lower. Gold Fields dropped 1.3%, while Harmony Gold and AngloGold Ashanti declined between 1% and 2%.

Canadian mining companies saw similar losses. Agnico Eagle Mines fell 1.5% and Kinross Gold decreased approximately 2%.