Gold and silver retreated in early Asian trading as renewed inflation concerns weighed on commodities markets. The decline followed a surge in oil prices driven by escalating Middle East tensions, with investors assessing the potential impact on global supply chains and monetary policy.

President Trump accused Iran of violating their cease-fire agreement over the weekend, threatening on social media to "knock out every single Power Plant and every single Bridge, in Iran" if Tehran doesn't reach a deal. Iranian parliament speaker Mohammad Bagher Ghalibaf responded that Tehran has no trust in the U.S. and its armed forces remain on full combat readiness.

Spot gold fell 2.0% to $4,740.37 per ounce, while silver dropped 2.6% to $78.68 an ounce. The precious metals selloff signals market anxiety that Middle East instability could drive oil prices higher, complicating Federal Reserve policy decisions and reigniting inflation pressures.