LONDON: Gold prices fell more than 1% on Monday as the US dollar strengthened and Treasury yields rose amid escalating tensions in the Middle East.
Spot gold was down 1.5% at $4,059.11 an ounce by 0356 GMT.
U.S. gold futures for August delivery fell 1.1% to $4,067.10 an ounce.
Other precious metals also traded lower.
Spot silver dropped 2.9% to $58.14 an ounce.
Platinum fell 1.8% to $1,598.48 an ounce, while palladium declined 2.3% to $1,247.27 an ounce.
Oil prices rose nearly 4% after tensions in the Middle East intensified.
The U.S. dollar and Treasury yields also moved higher, while Asian stock markets traded lower.
The market reaction followed an escalation in hostilities between the United States and Iran.
Missile and drone strikes were exchanged by both sides, while Tehran announced on Sunday that U.S. facilities in Gulf countries had been targeted.
Iran also said it had once again closed the Strait of Hormuz, one of the world’s most critical oil shipping routes, raising concerns over global energy supplies and financial markets.
