Gold prices stabilized on Monday as investors assessed the impact of the escalating war in the Middle East, amid signals from the US Federal Reserve about the potential need to raise interest rates to curb price pressures.

Spot gold was at $4,018.90 per ounce by 04:55 GMT, and US gold futures (August delivery) rose 0.1% to $4,023.10.

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Among other precious metals, spot silver rose 1.7% to $56.87 per ounce, platinum stabilized at $1,592.34, and palladium rose 0.1% to $1,249.25. Separately, oil prices rose more than 3% after US forces launched strikes on Iran for the ninth consecutive day on Monday, with the confirmed number of US military deaths in the renewed fighting rising to three, and concerns growing over navigation through the Strait of Hormuz. Traders currently estimate an 82% probability of a US interest rate hike in December, compared with 73% last week.