Ammon News - Gold prices ​extended losses on Monday on rising fears of a U.S. rate hike ‌after a strong jobs report, while renewed hostilities in the Middle East pushed oil prices higher and fanned inflation concerns.

Spot gold fell 0.2% to $4,319.09 per ounce by 0429 GMT. Prices fell about ​3% on Friday, hitting the lowest since March 24.

U.S. gold futures for ​August delivery were down 0.5% at $4,343.20.

"It is all based on the ⁠hawkishness that the market has started to place on the Fed futures," said Kelvin ​Wong, a senior market analyst at OANDA, adding that higher Treasury yields were further ​pressuring gold.

The yield on the benchmark 10-year U.S. Treasury note rose after jumping to a two-week high in the previous session, increasing the opportunity cost of holding non-yielding bullion.

Israel said it struck military targets ​in western and central Iran on Monday, even after U.S. President Donald Trump ​reportedly told Israeli Prime Minister Benjamin Netanyahu to refrain from further attacks.

Oil prices rose more than $3 a ‌barrel, ⁠deepening concerns over inflation and interest rate hikes.

While gold is seen as a hedge against inflation, higher interest rates tend to weigh on the non-yielding metal.

The U.S. economy posted a third straight month of strong job gains in May, confirming the labour market ​was gaining traction after ​stumbling last year ⁠and giving the central bank more room to keep rates steady amid rising inflation due to the Iran war.

Spot silver was steady at $67.86 per ounce, platinum lost 0.5% ​to $1,767.42, and palladium was unchanged at $1,225.67.

Reuters