Gold fell about 2% on Monday , as ‌a stronger US dollar weighed on the greenback-priced bullion, while higher energy costs fuelled inflation concerns and further dimmed the prospects for near‑term reductions in interest rates. Spot gold was down 1.7% at $5,082.51 per ounce, as ​of 0233 GMT. US gold futures for April delivery were down 1.4% at $5,099.40. The ​dollar rose to a more-than-three-month high, making bullion more expensive for holders ⁠of other currencies. The US 10‑year Treasury yields climbed to a one-month high, raising the cost ​of holding non‑yielding gold. “Gold is on the back foot today despite the market tumult, ​with triple-digit oil prices boosting the dollar on inflation fears and scaled back rate-cutting expectations,” said Tim Waterer, KCM Trade chief market analyst. Crude oil prices surged more than 20% to above $110 per barrel as the expanding ​U.S.-Israeli war with Iran led some major Middle Eastern oil producers to cut ​supplies amid fears of prolonged disruption to shipping through the Strait of Hormuz. “Much of gold’s price rise over the ‌last ⁠12 months was predicated on a dovish outlook for U.S. interest rates, but given the inflation risk presented by $100 per barrel oil, rate cuts are no longer a given and gold has repriced accordingly,” Waterer said. Investors expect the U.S. Federal Reserve to ​keep interest rates steady ​at the end ⁠of its two-day meeting on March 18, as per CME Group’s FedWatch tool. The odds of a June hold, which were below ​43% last week, climbed to more than 51%. Bullion tends to ​thrive in ⁠a low-interest-rate environment as it is a non-yielding asset. Meanwhile, raising geopolitical tensions in the Middle East, Iran on Monday named Mojtaba Khamenei to succeed his father, Ali Khamenei, as supreme leader, ⁠signalling ​that hardliners remain firmly in charge. Spot silver dropped 2.2% ​to $82.50 per ounce. Spot platinum fell 2.8% to $2,076.07, and palladium was down 1.2% at $1,605.12.