New Delhi, June 1 -- Amid uncertainty over a potential end to the three-month-long conflict in the Middle East, precious metals traded sharply lower in Monday's session. The latest escalation in the region has reinforced concerns that inflation could remain elevated, potentially keeping interest rates higher for longer.

Comex gold dropped another $117 per troy ounce to the day's low of $4,476, erasing all of its recent gains and putting the metal on track for a second consecutive day of losses. Gold has closed the last four months in the red and has lost more than 13% of its value since the beginning of the conflict.

Silver prices also remained under pressure, falling nearly $2.4 per ounce to the day's low of $73.5. The white metal, whi...