Gold prices dropped 3.3 percent to $4,146.51 per ounce on Monday, their lowest level since early August, as a combination of rising oil prices, a stronger US dollar, and higher Treasury yields weighed on the precious metal. The sell-off was driven in part by escalating tensions between the US and Iran, after President Donald Trump rejected an Iranian offer to reopen the Strait of Hormuz (a critical global shipping chokepoint), causing oil prices to spike roughly 3 percent and fanning fresh inflation fears. Because gold pays no interest, investors tend to shift away from it when yields rise — a trend that also dragged silver down nearly 5 percent, with platinum and palladium recording similar losses.