By Eastern Samvaad 
Gold prices saw a steep decline in Asian trading on Monday, falling nearly 4% and erasing most of their gains for 2026. Despite rising geopolitical tensions linked to the ongoing conflict involving the United States, Israel, and Iran, investors appeared more focused on inflation risks and interest rate outlooks.
Spot gold dropped significantly to around $4,287 per ounce, marking its lowest level since late December, while futures contracts also recorded heavy losses. Other precious metals followed the downward trend, with silver and platinum both posting notable declines.
The recent ultimatum issued by US President Donald Trump, giving Iran 48 hours to reopen the Strait of Hormuz, has heightened fears of further escalation. However, instead of boosting gold’s appeal as a safe-haven asset, the conflict has raised concerns about rising energy prices and inflation.
Market participants are increasingly worried that prolonged tensions could push central banks toward maintaining or even increasing interest rates, reducing gold’s attractiveness as a non-yielding asset.