US-Iran Tensions Weigh Down Gold Prices Amid Inflation Concerns

Gold prices lost momentum on Monday after a brief rally, as investors reevaluated their expectations following Federal Reserve Chairman Kevin Warsh's hawkish comments on inflation. The price of gold has still managed to post its strongest monthly gain since January, rising by around 10% in August.

The market's focus turned to oil prices, which jumped after the US struck Iranian launchers on Larak Island, raising concerns about potential disruptions to energy flows through the Strait of Hormuz. This development weighed on gold prices, causing them to fall.

Copper futures also declined, extending their losses for a fourth consecutive day, due in part to a stronger dollar and growing expectations of a Federal Reserve rate hike next month.