Spot gold and silver experienced a sharp decline during trading hours. Spot gold dropped approximately 150 dollars in a short period, falling below the $5,050 per ounce mark.

During the session, both gold and silver gave up earlier gains. Gold opened higher but quickly reversed, declining over 2% to a low of $5,027.81 per ounce.

At the same time, spot silver fell more than 4% intraday, briefly dropping below $81 per ounce before recovering slightly to $81.507.

Other precious metals also faced downward pressure, with spot palladium declining over 3% to $1,562.75 per ounce.

The U.S. dollar index rose to 99.5 during Asian trading hours, marking an intraday increase of 0.6%.

Non-U.S. currencies broadly weakened. The euro fell 0.8% against the dollar to 1.1524, while the British pound declined 0.77% to 1.331. The Australian dollar dropped 0.86% to 0.697, and the dollar rose 0.38% against the yen to 158.36.

Investors are closely monitoring developments in Middle East tensions, with market sentiment over the weekend contributing to a surge in oil prices and strengthening the dollar, which in turn weighed on gold.

Market focus remains on energy prices and the Federal Reserve's policy outlook. Amid rising inflation pressures and economic slowdown risks, along with labor market volatility and geopolitical uncertainties, the Fed faces a challenging policy decision but has so far maintained interest rates unchanged.