Gold prices experienced a notable decline on Monday, reaching a near one-week low as spot gold fell 1.1% to $4,694.30 per ounce. This drop was largely attributed to a stronger U.S. dollar, which made gold more expensive for holders of other currencies. Additionally, a surge in oil prices, which surpassed $100 a barrel, heightened inflation concerns and diminished hopes for interest rate cuts by the U.S. Federal Reserve this year. The dollar's strength has led traders to reassess the likelihood of rate cuts, with previous expectations of two cuts this year now looking increasingly unlikely. The ongoing conflict in the Middle East, particularly between the U.S. and Iran, has contributed to these inflation fears, as tensions escalate over oil shipments. Despite a slight uptick in gold demand in India ahead of a key festival, elevated prices have weighed on overall sentiment. Other precious metals also saw declines, with silver down 1.9% and platinum down 1.3%.