Gold falls over 3% to seven-week low

Gold fell more than 3% on Monday, touching its lowest level in over seven weeks and prompting renewed selling in bullion markets.

Data showed the drop was sharp for a single session; traders said the move coincided with gains in oil and a rise in market pricing for additional US interest-rate increases.

Higher oil and US rate odds

Traders said stronger oil prices raised inflation concerns while market-implied Fed tightening lifted real yields, reducing gold's appeal as a non-yielding asset. Market strategists added that when real yields rise, investors often reallocate from bullion into income-bearing assets.

Market participants said the flow hit exchange-traded bullion and pressured mining-sector sentiment in early trade, amplifying the price move as stop-loss orders and short-positioning accelerated selling.

Investors will watch oil market moves and US rate signals over the next 48 hours for clues on whether bullion can regain support; a sustained retreat in oil or softer rate expectations would likely steady prices, traders said.

A near-term calendar risk is any fresh US economic comments or data in the coming two days that could alter rate expectations and further sway bullion flows.