Gold prices fell in Asian trading on Monday, pressured by rising oil prices as tensions between the United States and Iran showed no signs of easing ahead of the ceasefire expiring later this week.
Spot gold fell 0.6% to $4,802.83 an ounce, while gold futures fell 1.2% to $4,822.45 an ounce by 06:26 (Saudi time).
Gold posted modest gains last week amid growing optimism about a peace deal between the United States and Iran, although that perception largely faded after Iran closed the Strait of Hormuz again over the weekend.
President Donald Trump said Sunday evening that the United States had fired on and seized an Iranian vessel that was trying to evade the blockade, with both sides also claiming that the other had violated the ceasefire.
Trump said US envoys were en route to Pakistan for further ceasefire talks. But Iranian media reported that Tehran had not committed to any future talks.
Oil prices surged as much as 7% on Monday, keeping markets largely on edge over the inflationary effects of the Iran war. Concerns about energy-driven inflation have weighed heavily on metal prices since the conflict began in late February.
Among other precious metals, spot silver fell 0.5% to $80.460 an ounce, while spot platinum held steady at $2,106.35 an ounce.
Silver significantly outperformed gold last week after an industry report indicated a worsening supply deficit in 2026.
