Gold prices tumbled Monday as a diplomatic impasse over the Iran war keeps energy costs elevated, adding to inflation pressures and bolstering expectations that the Federal Reserve will raise interest rates again next month. In afternoon European trading, New York gold futures fell 3.1% to $4,189 a troy ounce, their lowest in more than seven weeks. Other precious metals followed suit, with silver futures dropping 4.7% to $61.78 an ounce and platinum down 2.6% to $1,731 an ounce.

Higher energy costs have added to inflation concerns, while rising Treasury yields and a stronger U.S. dollar have further reduced the appeal of noninterest-bearing assets. Traders see about a 70% probability of an October hike, according to the CME Group’s Fed Watch tool.