Bullion fell as much as 1.4% to dip below US$4,610 an ounce in early trading, having lost 1.7% in the previous session. In a social-media post over the weekend, Trump said he would bring “Hell” to Iran if it didn’t open the Strait of Hormuz, while Tehran rejected the ultimatum and kept up strikes on energy infrastructure in the region.

Trump also said he plans to hold a news conference at 1pm on Monday and posted about a Tuesday 8pm Eastern Time deadline, without offering any details about what he meant. On March 26, the US president gave Iran a 10-day deadline to reopen Hormuz, which would expire Monday evening.

Gold has fallen more than 12% since the conflict began in late February, as spiking energy prices have stoked fears of inflation and reduced the prospects for interest-rate cuts that typically benefit non-yielding precious metals.

Bullion’s haven appeal has also been dimmed by the need for investors to liquidate their positions and cover losses elsewhere. Oil climbed and US equity-index futures dropped on Monday.

Spot gold fell 0.8% to US$4,637.60 an ounce at 6.55am Singapore time. Silver dropped 1.5% to US$71.95. Platinum and palladium also declined. The Bloomberg Dollar Spot Index, a gauge of the US currency, rose 0.1% after ending the previous session up 0.3%.