Spot gold fell 0.2% to $4,820.77/oz and futures dropped 0.8% to $4,840.85/oz on Monday.
Tensions rose after US forces seized Iranian vessel M/V Touska, prompting oil price gains and renewed inflation concerns.
Equities outperformed gold, with the S&P 500 up 11.6% versus gold’s 7.3% rise since early April.
Analysts say gold remains a safe haven but faces headwinds from higher yields and inflation‑linked rate expectations.