Gold prices fell on Monday, as traders lock in profits after a rally to nearly a two-month peak, caused by intense clashes between Israel and Iran over the weekend, which fueled fears of a larger regional conflict, UNN writes, citing Reuters.
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Spot gold fell 0.5% to $3,414.32 an ounce at 06:34 GMT (09:34 Kyiv time) after hitting its highest level since April 22 earlier in the session.
US gold futures also fell 0.5% to $3,434.80.
"It is the joint political risk premium, which is growing due to the Iranian-Israeli conflict at the moment, that has increased the demand for gold as a haven," said Kelvin Wong, senior market analyst for Asia-Pacific at OANDA.
"Now we have a clear breakout above $3,400, and the short-term uptrend remains. We see a resistance level at $3,500 and with the possibility of breaking a new high above $3,500," he noted.
Israel and Iran launched new attacks on Sunday, killing and wounding civilians and raising fears of a wider regional conflict, with both armies calling on civilians on the opposite side to take precautions against further strikes.
US President Donald Trump has expressed hope that Israel and Iran will be able to reach an agreement, but said that sometimes countries have to fight first.
Gold is considered a safe haven asset in times of geopolitical and economic uncertainty.
This week, investors will be eagerly awaiting a host of central bank monetary policy decisions, with the US Federal Reserve in the spotlight on Wednesday.
The US central bank is expected to keep interest rates at the same level, and markets are waiting for signals about a possible rate cut in the coming months.
Futures markets are anticipating expectations of two rate cuts by the end of the year, possibly starting in September, boosted by moderate inflation data last week.
Spot silver rose 0.2% to $36.36 an ounce, platinum rose 1.5% to $1,245.67, and palladium rose 1.5% to $1,043.53.