Gold prices plunged over 2% on Monday, extending losses to a four-month low as rising Middle East tensions fuelled inflation concerns and shifted expectations towards higher global interest rates. Spot gold marked its ninth straight session of decline, while US futures also dropped sharply.
Escalating conflict involving Iran and threats to energy infrastructure kept oil prices elevated, worsening inflation outlooks. Despite its traditional safe-haven status, gold faced pressure as higher interest rate expectations reduced its appeal. Markets are closely tracking geopolitical developments, crude price movements, and Federal Reserve signals for further direction in bullion and broader commodities.