Oil prices tanked on Monday on easing U.S.-Iran tensions while precious metals swung wildly following last week's dollar-fuelled collapse sparked by Donald Trump's hawkish pick to lead the Federal Reserve.
Both main crude contracts shed more than 3 percent in early Asian trade as the U.S. president said he was hopeful of reaching a deal with Tehran after it warned that any attack on the Islamic republic would trigger a regional conflict.
Oil's drop was helped by a stronger dollar, which came on the back of news that Trump had tapped Kevin Warsh to take the helm at the U.S. central bank.
Traders regard Warsh as the toughest inflation fighter among the final candidates, raising expectations of monetary policy that would underpin the greenback.
The announcement sent dollar-priced precious metals plunging on Jan. 30, with gold losing as much as 12 percent and silver more than 30 percent at one point.
And the losses mounted on Monday, with gold shedding as much as 6 percent to touch $4,586, while silver briefly lost around 11 percent to $75. Both bounced back slightly but were well down from their record highs of $5,595 and $121 touched last week.
The easing of Iran tensions added to the selling pressure on gold and silver, which are also considered go-to havens in times of turmoil and uncertainty.
