Spot gold prices fell 1.5% to $3,957.74 per ounce on Monday, extending the downward trajectory that began over the weekend.
The precious metal is now on track for a fourth consecutive monthly decline, as selling pressure intensified following a retreat from recent highs.
The sell-off reflects a shift in market sentiment regarding the Federal Reserve’s policy path.
Traders are increasingly concerned that rising oil prices are feeding into broader inflationary pressures.
This dynamic is reducing the appeal of gold as a safe haven, as investors anticipate that the central bank may need to maintain higher interest rates for longer to combat sticky inflation.
The immediate focus for markets is the upcoming US Consumer Price Index (CPI) data release later today.