Gold fell below $4,700 an ounce on Monday, extending last week’s losses as attempts to revive US–Iran peace negotiations faltered and the Strait of Hormuz remained effectively closed, heightening concerns over persistent inflationary pressures. US President Donald Trump cancelled a planned trip by top envoys to resume talks with Iran in Islamabad, while Tehran reiterated it would not engage in negotiations under threats or blockade. Meanwhile, oil prices rallied as the Middle East conflict entered its ninth week, triggering what the IEA has characterized as the largest energy supply shock on record. Elevated inflation risks have strengthened expectations that central banks may keep interest rates higher for longer or even tighten further, weighing on non-yielding bullion. The US Federal Reserve is also expected to proceed cautiously, with gradual rate cuts anticipated under incoming Chair Kevin Warsh.