Gold prices edged lower in Asian trade on Monday as investors turned to the U.S. dollar for safety after Washington launched strikes on Iran's nuclear facilities over the weekend, triggering a renewed wave of geopolitical tension in the Middle East.

Dollar Takes Center Stage as Haven Asset

Spot gold was down 0.2% to $3,360.11 an ounce, while gold futures dipped 0.3% to $3,374.72 by early morning trade. While bullion had benefited earlier in June from the Israel-Iran war, Monday saw demand pivot toward the dollar, which rose over 0.3% against major currencies.

The shift came after President Donald Trump confirmed strikes on three of Iran's key nuclear sites, claiming they had "wiped out" active nuclear capabilities. Though unverified, the statement stoked fears of retaliation from Tehran, including threats to block the Strait of Hormuz—a vital global oil route.

Geopolitical Risk Supports Oil, but Not Gold

While gold usually benefits during conflict, the dollar's dominance—combined with concerns over sustained high interest rates due to energy inflation—is capping upside for the yellow metal.

The Federal Reserve's hawkish hold last week and muted guidance on rate cuts have lent further support to the greenback. Traders are now awaiting comments from Fed Chair Jerome Powell, who is scheduled to testify before Congress across two days starting Tuesday.

Platinum, Silver Retreat After Strong June Gains

Other precious metals also cooled:

• Platinum futures fell 0.1% to $1,263.15/oz, retreating from a four-year high.

• Silver futures edged up 0.1% to $36.05/oz, still near a 13-year peak.

Both metals had outperformed gold in recent weeks due to supply constraints and strong industrial demand, especially from China.

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