Global gold prices posted a modest decline on Monday as investors assessed rising inflation concerns, elevated oil prices and uncertainty surrounding the future path of Federal Reserve policy.

Spot gold slipped 0.3 percent to $4,599 per ounce, while US gold futures also moved lower to $4,611 an ounce.

Market analysts said traders are closely watching possible diplomatic developments between the United States and Iran. Hopes of progress in talks have added another layer of uncertainty to precious metals trading.

US President Donald Trump recently announced that Washington would take steps to assist ships stranded in the Strait of Hormuz. Iranian media reports said Tehran has received the American response through Pakistan and is currently reviewing it.

Meanwhile, oil prices remained above $100 per barrel, raising concerns that major central banks may keep interest rates elevated for longer. Higher borrowing costs usually put pressure on non-yielding assets such as gold because investors often shift funds toward assets offering stronger returns.

Last week, the Federal Reserve kept its benchmark rate unchanged and maintained a cautious stance. Officials also warned that regional tensions linked to Iran could intensify inflation risks and reduce the chances of rate cuts this year.

Recent economic data showed US inflation accelerated in March. The Personal Consumption Expenditures index, a key inflation measure, rose 0.7 percent, marking its strongest monthly increase since June 2022.

Other precious metals saw limited movement, with silver, platinum and palladium trading in a narrow range.