Gold moved lower in Asian trade on Monday, slipping to a one-and-a-half month trough as rising sovereign bond yields and sustained U.S.-Iran tensions undercut demand for the metal.
Spot gold dropped 1.3% to $4,483.67 an ounce by 20:44 ET (00:44 GMT), approaching its lowest level since late March. Gold futures fell 1.7% to $4,484.82/oz.
Markets were pressured by a broad upswing in yields across developed economies, which amplified concerns that a protracted conflict in the Middle East could feed energy-driven inflation and prompt central banks to maintain or adopt more hawkish stances. Higher interest rates raise the opportunity cost of holding non-yielding assets such as gold, making the metal less attractive relative to other investments.
U.S. 10-year Treasury yields were trading around a one-month high, while Japanese 10-year yields reached a 29-year high on Monday. The rise in yields coincided with strength in the U.S. dollar, which put additional downward pressure on metal prices.
The weakness in the precious metals complex extended beyond gold. Spot silver fell 1.9% to $74.5840/oz, and spot platinum declined 0.3% to $1,972.05/oz.
Geopolitical developments also weighed on sentiment. Tensions between the United States and Iran remained elevated, and President Donald Trump warned that the "clock was ticking" for Tehran to accept a peace deal. Observers saw the U.S. and Israel as considering renewed military action against Iran amid limited progress in negotiations over a settlement. In addition, Trump's summit in China produced little forward movement on the Iran issue, according to available reports.
The combination of higher yields, a firmer dollar and ongoing geopolitical uncertainty left gold and other metals on the defensive as markets evaluated the potential inflationary consequences of sustained regional conflict and the implications for global monetary policy.
Conclusion - Rising global bond yields and persistent U.S.-Iran tensions pushed gold to multi-week lows, while silver and platinum also retreated as investors factored in higher opportunity costs and a firmer dollar.