Gold eased in Asian trade on Monday as a rebound in oil prices and renewed tensions between the United States and Iran weighed on investor appetite for the metal. Spot bullion fell 0.6% to $4,802.83 an ounce, while gold futures were down 1.2% at $4,822.45 per ounce by 22:26 ET (02:26 GMT).
Last week had seen modest gains for gold amid growing optimism over the possibility of a U.S.-Iran peace agreement. That optimism cooled after Iran again closed the Strait of Hormuz over the weekend, a move that pushed energy prices higher and raised concerns about inflation.
According to statements reported on Sunday evening, President Donald Trump said U.S. forces fired on and captured an Iranian vessel that was attempting to skirt a blockade. Both the United States and Iran have accused the other of breaching the ceasefire that is due to expire later in the week. The U.S. said envoys were traveling to Pakistan to pursue additional ceasefire discussions, while Iranian media conveyed that Tehran had not committed to any future talks.
Oil reacted strongly to the renewed tensions, rising as much as 7% on Monday. The sharp jump in crude prices kept markets on edge about the potential for energy-driven inflation, a key factor that has pressured metal prices since the conflict began in late-February.
Other precious metals registered smaller moves. Spot silver declined 0.5% to $80.460 an ounce, while spot platinum held steady at $2,106.35 an ounce. Separate industry commentary last week noted a worsening supply deficit for silver in 2026, a factor that had helped silver outperform gold in the prior session.
Market participants are watching the ceasefire timeline, energy price trajectories, and any developments from planned diplomatic contacts closely. For now, the combination of higher oil, disputed ceasefire compliance, and mixed signals on negotiations has nudged bullion lower.