• Australian gold stocks fall as much as 3.9%, while the broader benchmark is down 0.5%

• Sub-index logs biggest intraday pct drop since July 17, but on track for a 1.7% rise for the week

• Gold prices dropped 2% overnight as escalating tensions in the Middle East sent oil prices surging and intensified inflation concerns [GOL/]

• Index leaders Northern Star Resources and Evolution Mining fall as much as 3.2% and 2.8%, respectively

• YTD, AXGD down 18.9%, including the day's moves, underperforming a 0.9% rise in the AXJO

(Reporting by Nikita Maria Jino in Bengaluru)