Gold prices fell below $4,500 at the opening of the week after maintaining defensive mode last week due to the US inflation report that jumped compared to initial expectations.
The focus is still on the US-Iran conflict, which is the main cause of the world energy crisis and the Federal Reserve's interest rate bets.
At 9.40 am, gold prices were trading at $4,507, down 0.70% since it opened early Monday in the Asian session.
Gold prices continued to be under pressure as market sentiment was again affected by geopolitical tensions and expectations of high interest rates in the United States (US).
US President Donald Trump on Sunday reportedly gave a stern warning to Iran to act immediately or face new consequences from Washington.
At the same time, Trump's visit to China was also seen to have brought no major developments either in trade negotiations or efforts to end the current geopolitical conflict.
The situation has caused investors to be cautious again as the risk of global tensions has not subsided.
Marex analyst Edward Meir said China is seen as not helping much in resolving the current conflict, while the rise in crude oil prices has reinforced concerns about global inflation.
The situation has put pressure on precious metals including gold as the market begins to expect tight monetary policy to continue for longer.
The CNBC report also mentioned that the US wants Iran to stop its nuclear program and reopen the strategic Strait of Hormuz route.
At the same time, the Mehr news agency reported that Washington allegedly failed to offer any real concessions in the negotiations, thus increasing the risk of a stalemate between the two sides.
Meanwhile, data from the CME FedWatch Tool shows that traders are now increasingly reducing expectations for a US interest rate cut this year. On the contrary, expectations for rates to remain high are increasing.
This situation usually puts pressure on gold because the safe-haven asset does not offer interest returns, thus making it less attractive when interest rates are at high levels.
