Gold prices fell as markets weighed renewed Middle East tensions against a more restrictive global monetary policy backdrop, with three major central banks raising rates within two weeks. Spot gold declined 0.5% to $4,354.30 an ounce by 0648 GMT, while U.S. gold futures fell 0.8% to $4,391.50. The metal retreated despite President Donald Trump's warning that Iran could face economic collapse or the elimination of its leadership without a deal, and Iran's military threatening a harsh response to any new attack. KCM Trade chief market analyst Tim Waterer said gold's near-term performance would depend on geopolitics, oil and bond yields, projecting a range of roughly $4,200 to $4,580. The Bank of Japan raised its benchmark rate to 1.25% on Friday in a 7-2 vote, following a 25-basis-point Federal Reserve increase earlier that week and a European Central Bank rate hike the previous week. Fed Chair Kevin Warsh reaffirmed the central bank's 2% inflation target, keeping further increases under consideration. Standard Chartered said official-sector demand, especially central-bank purchases, continues to support gold, although structural price drivers are advancing more slowly. Oil prices fell on hopes for diplomatic progress involving Iran, while investors monitored Saudi crude shipments, attacks by Yemen's Iran-backed Houthi group, a possible Trump meeting with Iranian President Masoud Pezeshkian, and an upcoming Trump-Xi Jinping summit. Silver and platinum also declined, while palladium rose. Gold's next move will depend on whether easing oil prices reduce inflation pressure or renewed conflict pushes energy costs higher and keeps central banks hawkish.