ISTANBUL

Spot gold fell below the $5,100 per ounce threshold on Monday, retreating from earlier highs as investors recalibrated their portfolios amid a surging greenback.

The precious metal, which briefly spiked following joint strikes on Tehran earlier in the month, saw its gains evaporate as market concerns shifted toward persistent inflation and the Federal Reserve's policy path.

Gold price per ounce lost 1.55% to. $5,090 as of 0830GMT, while it saw $5,015 level earlier on Monday; the US dollar index gained 0.55% to 99.5.

Oil prices surging above $100 per barrel for the first time since 2022 has fueled fears of renewed global inflation, leading traders to scale back bets on interest rate cuts.

Higher energy costs and a stronger dollar have historically weighed on non-yielding bullion, making it more expensive for holders of other currencies.

While the escalating war with Iran and disruptions in the Strait of Hormuz continue to provide a floor for prices, the market remains in a period of consolidation.