Gold trimmed losses to ​recover from a four-month low on Monday, after US President Donald Trump postponed military ‌strikes on Iranian infrastructure, but prices were still down for a ninth straight session as bets on higher interest rates dimmed the metal’s appeal.

Spot gold fell 1.8 per cent to $4,407.06 per ounce by 1:30 pm ​ET (17.30 GMT), after falling over 8 per cent earlier in the session. It posted its worst weekly performance ​since 1983 on Friday. U.S. gold futures settled 3.7 per cent lower at $4,407.30.

“The overnight sell-off was a continuation of the long liquidation we’ve seen over the ​past several sessions, driven largely by expectations of rising interest rates. The dramatic reversal ​came after Trump’s post on Truth Social. The headline triggered broad reversals across markets — metals, energy and equities alike,” said David Meger, director of metals trading at High Ridge Futures.

“It’s fair to assume ​that we’re going to see volatility continue,” he added.

Higher energy prices have lately increased bets on rates staying higher for longer. Gold, despite its reputation ‌as an inflation hedge and a safe haven, has struggled to benefit as elevated rates raise the opportunity cost of holding the non-yielding metal.

“Gold ​should do well in a stagflationary environment, it always has, but there may be more profit taking and liquidation first,” said John Reade, senior market strategist at the World Gold Council.

“2025’s trades are being unwound, and we are yet to see ​2026 stagflationary trades.”

Spot gold prices have fallen nearly 16 per cent since the West Asia conflict began on February 28, ​and have retreated over 20 per cent from their record peak ​of $5,594.82 reached on January 29.

Back home, gold prices slumped by ₹9,050 to ₹1.43 lakh per 10 grams while silver tumbled ₹10,500 to ₹2.30 lakh per kg in Delhi on Monday.

In Calcutta, pure gold fell by ₹8750 to ₹1,44,400 per 10 gram, while hallmark gold dropped ₹8,400 to ₹92,650. Silver bar and portion fell by ₹14,650 to ₹2,11,650 and ₹2,11,750, respectively.

With inputs from Reuters