09:15 AM EDT, 06/23/2025 (MT Newswires) -- Gold prices fell early on Monday as the dollar moved higher following the U.S. attack on Iranian nuclear facilities over the weekend.

Gold for August delivery was last seen down US$12.80 to US$3,372.90 per ounce, falling off overnight highs of US$3,413.80.

The drop comes as the market awaits Iran's response to the attacks on its Fordow, Natanz and Isfahan uranium-enrichment facilities. Fears the country could block oil exports through the Strait of Hormuz are failing to significantly raise oil prices, easing concerns of oil-induced inflation as commodities generally fell off overnight highs with the advancing dollar.

"Gold prices also rose on the Asian opening...before drifting lower amid the risk of energy-related inflation reducing chances of gold-supportive rate cuts from the Fed, which may opt to hold rates at current relatively high levels, potentially strengthening the US dollar at the same time.

The ICE dollar index was last seen up 0.59 points to 99.3, the highest since May 30. Treasury yields fell, with the U.S. two-year note last seen paying 3.901%, down 1.5 basis points, while the yield on the 10-year note was down 3.3 points to 4.35%.