Gold prices tumbled to their weakest level in more than a month on Monday as rising oil prices and fresh Middle East tensions shook investor confidence, pushing traders away from the safe-haven metal.Spot gold fell 1.1% to $4,488.99 per ounce, its lowest since March 30, while US gold futures for June slipped 1.5% to $4,493.30.Pressure on the yellow metal came after oil prices continued their upward rally after a drone strike at a nuclear power plant in the United Arab Emirates, increasing fears of a wider regional conflict. Saudi Arabia’s interception of three drones and US President Donald Trump’s sharp warning to Iran further added to market anxiety as hopes of ending the US-Israeli war appeared to fade.As crude climbed to a two-week high, investors were concerned that higher energy costs could reignite inflation globally. That, in turn, has strengthened expectations that central banks, especially the US Federal Reserve, may keep interest rates elevated for longer or even tighten further.Markets are now pricing in a growing chance that the Federal Reserve could raise rates before the end of the year, with CME’s FedWatch tool showing a 50% probability of a hike by December. Investors are now closely watching the minutes of the Fed’s April meeting, due later this week, for more clues on where U.S. monetary policy is headed.Meanwhile, India’s foreign exchange reserves rose sharply by $6.295 billion to $696.988 billion in the week ended May 8, recovering from the previous week’s steep decline.A major driver of this rebound was a significant jump in gold reserves, which increased by $5.637 billion to $120.853 billion, reflecting the growing strategic importance of bullion in India’s reserve basket during a volatile global environment.Foreign currency assets, the biggest component of India’s reserves, also edged up by $562 million to $552.387 billion.The recovery comes after the country’s reserves had fallen from their record peak of $728.494 billion reached in February, when escalating Middle East tensions triggered pressure on the rupee and prompted intervention by the Reserve Bank of India.The latest RBI data also showed Special Drawing Rights rising to $18.873 billion, while India’s reserve position with the IMF increased to $4.875 billion.