02:00 PM EDT, 06/16/2025 (MT Newswires) -- (Updates prices.)

Gold fell off a record high early on Monday, even as the dollar dropped, as safe-haven buying eased with Israel and Iran continuing to trade attacks without expectations for a wider conflict.

Gold for August delivery was last seen down US$35.50 to US$3,417.30 per ounce, after rising to a record US$3,452.80 on Friday.

The drop comes after Israel on Friday launched attacks on Iran as it looks to disable Tehran's nuclear program. The two countries traded strikes on each other over the weekend, but there is little sign their conflict will spread and disrupt trade.

"While gold tends to trade higher in the immediate aftermath of a crisis, nearly regardless of the type, it is economic and financial fallout that is necessary for durable performance. In this instance, we'd eye the same drivers impacting energy markets for such signals, as regional escalation could ignite broader risk aversion and appeal for gold, driving flows and prices higher and adding durability to the geopolitical premium," Christopher Louney, a commodities strategist at RBC Capital Markets, noted.

A weaker dollar eased gold's fall, with the ICE dollar index last seen down 0.19 points to 98.0. Treasury yields were higher, with the yield on the US two-year note up 1.9 basis points to 3.977%, while the 10-year note was paying 4.449%, up 4.3 points.