Gold Prices Fall on Monday Amid US-Iran War Escalation

Gold prices fell on Monday due to increased demand for the US dollar and oil, despite remaining above $5,000 an ounce.

The yellow metal had been benefiting from haven demand, but its gains were tempered by concerns that the inflationary effects of the U.S.-Israel war with Iran could lead to a more hawkish stance from major global central banks.

Oil prices surged initially on Monday after US and Israeli strikes on Iran's oil facilities, but then pared most of their gains after reports emerged that G7 countries were considering releasing emergency reserves in the face of supply disruptions.

Silver, however, bucked gold's trend and rose 3.1% to $86.9580/oz, while platinum increased by 2.2% to $2,189.10/oz.