LONDON, March 23 — Gold and silver prices continued to see sharp losses on Monday, with bullion failing to act as a traditional safe haven amid the Iran conflict, reported German Press Agency (dpa).

Spot gold fell about four per cent in early trading to just above US$4,300 per ounce, down more than 18 per cent since the start of US-Israeli attacks on Iran.

Prices had initially surged to nearly US$5,420 in the early days of the conflict.

Rising oil prices have increased inflation risks and reduced expectations for near-term interest rate cuts by the US Federal Reserve and other central banks.

Higher interest rates typically weigh on non-yielding assets such as gold.

Monday’s decline wiped out all gains made since the start of the year.

Gold has fallen nearly US$1,300, or about 23 per cent, from its record high of close to US$5,600 in late January.

Silver has seen even steeper losses. Prices have dropped by nearly half from a record high of around US$122 per ounce at the end of January.

On Monday, silver fell a further five per cent to US$64.25, leaving it down more than 30 per cent since the Iran conflict began just over three weeks ago. — Bernama-dpa