Gold prices were on the decline on Monday, after a small spike over the weekend as investors turned to the traditional safe-haven investment following the US bombing Iran's nuclear facilities.
The price of gold was down 0.4% at $3,356 an ounce, having fallen from $3,448 earlier in the month to $3,341 on Friday and then spiked to $3,380 on Sunday.
Financial markets showed a "pretty muted response" to the US joining Israel's attacks on Iran, said Deutsche Bank macro strategist Jim Reid.
"In terms of what this all means for markets going forward, it's really all about whether the Iranian regime weaponises oil, and in particular whether they seek to close the Strait of Hormuz where over 20% of the world's oil flows daily."
Oil prices jumped to their highest since January, but were dropping back from earlier peaks as trading in Europe began on Monday.
Kristian Kerr, head of macro strategy at LPL Financial, said: "At this moment, global attention is centered squarely on Iran and the nature of its response to recent developments.
"The situation remains highly fluid, and much hinges on whether Tehran opts for a restrained reaction or a more aggressive course of action."