Comex gold futures fell to an intraday low of $4,012 on Monday, while silver dropped to $57.84, marking a fourth consecutive session of losses for precious metals.
The decline was driven by renewed tensions in the Middle East, which have shifted market focus from safe-haven buying to concerns over inflationary pressures and the potential for further interest rate hikes by the US Federal Reserve.
The repricing reflects a broader shift in market sentiment.
While geopolitical instability typically supports gold, the current escalation is being interpreted by traders as a supply-side risk that could drive up energy and commodity prices.
This inflationary outlook has strengthened the US dollar and pushed up Treasury yields, both of which weigh heavily on non-yielding assets like gold and silver.
This development follows a period of sustained selling pressure.