Spot gold suffered a sharp selloff on Monday, sliding more than 1.2% to trade below the key $4,400 per ounce threshold during the session. This marks the fourth consecutive daily decline for the precious metal, with cumulative losses over that stretch reaching 4.37%, according to data from Wind. As of the latest update, the price action has completely wiped out all the advances built up over the previous ten trading days.

In a contrasting move, international oil prices surged dramatically, with both Brent and WTI crude climbing over 2% on the day. Brent crude has reclaimed the $90 per barrel level, signaling renewed risk appetite in the energy complex.

On the macro front, market sentiment was heavily influenced by hawkish comments from Federal Reserve Chair Warsh during his speech at the Jackson Hole global central banking symposium. His remarks prompted a significant upward revision in market expectations for interest rate hikes through mid-2027, which in turn pressured gold prices lower as bond yields rose.

Adding to geopolitical tensions, Iran's Fars News Agency reported on Sunday that residents near Larak Island heard explosions at approximately 10:00 PM local time. According to international media reports, the blasts were the result of a US military strike on facilities located on the island. In the aftermath, Iran's Islamic Revolution Guard Corps issued a swift response, stating that the attack caused casualties among both Iranian soldiers and civilians, and vowed that the US assault on Larak Island would be met with "a response and punishment."