Gold prices were steady on Monday after paring a near 1% fall earlier in the session, as a softer dollar helped offset waning hopes of near-term U.S. interest-rate cuts due to elevated energy prices.
Spot gold was unchanged at $5,017.53 per ounce, as of 0101 GMT. U.S. gold futures for April delivery fell 0.8% to $5,020.90.
The dollar nudged lower, making greenback-priced commodities such as bullion cheaper for holders of other currencies.
The U.S. 10-year Treasury yields eased, increasing the appeal of non-yielding bullion.
Oil prices remained above $100 a barrel as the U.S.-Israeli war against Iran entered a third week, putting oil infrastructure at risk and keeping the Strait of Hormuz shut in the biggest disruption to global supplies ever.
Higher crude prices feed into inflation by raising transportation and production costs. Gold is considered an inflation hedge, but high interest rates make yield-bearing assets more attractive, weighing on its appeal.
U.S. President Donald Trump threatened more strikes on Iran’s main oil export hub, Kharg Island, over the weekend and said he was not ready to reach a deal to end the war.
Trump insisted that nations relying heavily on oil from the Gulf have a responsibility to protect the strait.
Meanwhile, the Wall Street Journal reported the Trump administration plans to announce as early as this week that multiple countries have agreed to form a coalition to escort ships through the Strait of Hormuz.
The U.S. Federal Reserve is widely expected to hold interest rates steady for a second straight meeting when it gives its policy statement on Wednesday.
Spot silver was up 0.4% at $80.88 per ounce. Spot platinum gained 0.9% to $2,049.50 and palladium rose 0.3% to $1,556.50.
