Gold prices fell sharply on Monday, hit by a stronger dollar and a spike in U.S. Treasury yields amid bets the Federal Reserve is preparing to begin an aggressive tightening cycle.
Hopes of progress in Russia-Ukraine peace talks also dented demand for the safe-haven metal.
Spot gold fell 1.3 percent to $1,933.28 per ounce, while U.S. gold futures were down 1.1 percent at $1,931.90.
Inflation and Fed tightening expectations are at the absolute forefront of market participants.
The 10-year US Treasury yield today rose above 2.5 percent, its highest level since May 2019 as rising inflation risks contributed to expectations of more aggressive Fed tightening.
Citi last week forecast 275 basis points of tightening this year including half-point hikes in May, June, July and September.
Gold has also been impacted by hopes of a breakthrough in Ukraine-Russia talks.
Russia and Ukraine will restart face-to-face peace negotiations today after the former signaled that it may scale down its war and aims to concentrate on eastern Ukraine.
Ukraine President Zelenskyy also said he wants to make a deal with Moscow over Donbas and he is willing to discuss adopting a neutral status too.
The Donbas region has been partly controlled by Russian-backed separatists since 2014.