Gold, silver settle over 1% lower

Gold bars

Gold and silver prices closed lower on Monday, as escalating tensions between the US and Iran pushed oil prices higher, fueling concerns over inflation and tighter US monetary policy.

Precious metals came under pressure after Iran launched missile and drone attacks on targets in the Middle East following threats by US President Donald Trump against the Iranian leadership, sending oil prices higher.

Although gold is traditionally viewed as a safe-haven asset during times of war and geopolitical uncertainty, rising energy prices have heightened fears of persistent inflation, potentially prompting the US Federal Reserve to raise interest rates, which reduces the appeal of non-yielding assets such as gold.

Markets are now awaiting US private-sector employment data due Wednesday, followed by the monthly jobs report on Thursday, for fresh clues on the Fed's policy path.