Gold prices retreated below the $4650 per ounce mark in electronic trading on Monday, as safe-haven demand weakened despite escalating geopolitical tensions. The decline follows renewed concerns over a potential energy crisis after Donald Trump announced a blockade of the Strait of Hormuz, triggered by failed negotiations with Iran. While such developments typically support bullion, markets instead witnessed profit-taking after gold's recent rally toward three-week highs near $4800. Investor sentiment has turned cautious, with lingering doubts over the durability of any de-escalation efforts in the Middle East. Ongoing regional tensions and incomplete ceasefire coverage have limited fresh safe-haven inflows, prompting traders to trim positions. Adding pressure, the US dollar index rebounded toward the 99 level, reducing gold's appeal as an alternative asset. Despite persistent inflation concerns driven by earlier oil price spikes, the immediate reaction reflects a market consolidating gains rather than extending the rally. On the domestic front, MCX June gold futures edged lower by 0.5% to ₹1,51,900 per 10 grams, mirroring the subdued global trend. Overall, gold remains caught between geopolitical uncertainty and profit-booking pressures, signaling a phase of consolidation unless fresh catalysts revive safe-haven demand.