Gold prices fell on Monday as a stronger U.S. dollar and rising Treasury yields made bullion less attractive, while higher energy costs fueled inflation concerns.

Spot gold dropped 0.8% to $5,130.94 per ounce, and U.S. April gold futures declined 0.4% to $5,138.20.

Crude oil surged above $110 per barrel amid the expanding U.S.-Israeli war with Iran, raising inflation risks and reducing expectations for near-term interest rate cuts.

Analysts noted that gold’s recent gains were largely driven by a dovish U.S. rate outlook, which has shifted due to elevated oil prices and inflation fears, Reuters has reported.

Other precious metals were mixed, with silver steady at $84.42, platinum slightly down to $2,133.95, and palladium falling 0.9% to $1,610.