Gold hovered around $3,360 per ounce in volatile trade on Monday as investors closely monitor the escalating war in the Middle East following US involvement in Israeli strikes on Iran. US forces struck Iran's three main nuclear sites over the weekend, with President Donald Trump warning of more attacks if Tehran does not make peace. The outbreak of the Israel-Iran war has added fresh momentum to a rally that has driven gold prices up nearly 30% so far this year. Meanwhile, several Federal Reserve officials are scheduled to speak this week, with Fed Chair Jerome Powell set to testify before Congress over two days, where discussions are expected to cover the potential impact of President Donald Trump's tariffs and the attack on Iran. On the data front, investors will be watching for US core inflation, weekly jobless claims, and PMI readings for more clues on the Fed’s next policy moves.