Gold prices dipped on Monday as muted concerns over escalated conflict in the Middle East depleted safe haven demand for gold, while projections of extended period of higher interest rate in the US put extra pressure on prices.

Spot gold dipped 0.9% to $2,370.45 per ounce, while gold futures slumped by 1.2% to $2,384.05 per ounce.

Gold staged a rally during the previous two weeks, touching record peaks above $2,400 per ounce amid Israel and Iran attacks.

Iran underestimated the effect of Israel attack on Friday and did not imply for any response from their side. Bolstering some hopes that the tension between the two countries will not escalate further, reducing the yellow metal demand.

The greenback muted close to five months peak, while US treasury yields ticked up as traders lingered worried over extended period of peaked interest rate.

Solid inflation figures and hawkish hints from Fed drove traders to reassess their projections for soon rate cut in June.