Spot gold was a bit lower at $4,327.96/oz, while gold futures were down 0.3% to $4,351.50/oz

Gold prices were subdued on Monday, even as the dollar weakened slightly and oil prices pared gains.

At 20:34 GMT, spot gold was a bit lower at $4,327.96/oz, while gold futures were down 0.3% to $4,351.50/oz.

The yellow metal is coming off a weekly decline, after a May U.S. jobs report on Friday bolstered wagers that the central bank would likely raise interest rates later this year.

Total nonfarm payroll growth last month broke past expectations and, coming on the heels of other positive indicators on the labour market earlier in the week, suggested that the maximum employment part of the central bank’s dual mandate was under control and that the inflationary side was undoubtedly a bigger concern.

While inflation may be picking up around the world, and gold is often considered as a hedge against high inflation, it is the prospect of higher interest rates to counter price increases which continues to weigh on gold. Not only that, but it appears that the dollar is also a useful ‘flight to safety’, and we have seen it rally every time there’s a setback in U.S./Iranian ‘efforts’ to end the war, David Morrison, senior market analyst at Trade Nation, said.

In the Middle East, over the weekend there was a rapid rise in tensions after Iran and Israel attacked each other with strikes for the first time since a shaky ceasefire between all warring parties took effect in April.

The mood quickly improved, however, after Iran’s state media said Iran’s armed forces had announced the end of military operations against Israel. Meanwhile, Israeli Prime Minister also said that Israel will halt its attacks on Iran. Oil prices pared gains after the announcements.