Gold prices have dropped 0.42%, settling at $4,656.21 per ounce, as investors remain cautious about the evolving U.S.-Iran situation ahead of a Tuesday deadline for the Strait of Hormuz's reopening. Will Compernolle, a macro strategist at FHN Financial in Chicago, noted that market participants are learning not to take headlines at face value, especially as President Trump and Iran's sentiments about ceasefire negotiations fluctuate. The yield on U.S. 10-year notes decreased slightly to 4.341%, while the 30-year bond yield fell to 4.8948%. Analysts, including Bart Melek from TD Securities, warn that prolonged conflict could lead to higher oil prices, which would increase inflationary pressures and limit the Federal Reserve's ability to ease interest rates. This scenario is generally unfavorable for gold, which is often viewed as a hedge against geopolitical risks and inflation but becomes less appealing when interest rates are high. Additionally, other precious metals such as silver, platinum, and palladium experienced declines, with spot silver down 0.3% to $72.81 per ounce and platinum down 0.6% to $1,976.21.