Gold fell on Monday, as a stronger U.S. dollar weighed on the greenback-priced bullion, while higher energy costs fuelled inflation concerns and further dimmed the prospects for near‑term reductions in interest rates.
Spot gold was down 1.5% at $5,091.02 per ounce, as of 0233 GMT, after falling more than 2% earlier in the session. U.S. gold futures for April delivery were down 1.2% at $5,097.40.
The dollar rose to a more-than-three-month high, making bullion more expensive for holders of other currencies. [USD/]
The U.S. 10‑year Treasury yields climbed to a one-month high, raising the cost of holding non‑yielding gold.
Crude oil prices surged more than 20% to above $110 per barrel as the expanding U.S.-Israeli war with Iran led some major Middle Eastern oil producers to cut supplies amid fears of prolonged disruption to shipping through the Strait of Hormuz.
