June 16 (Reuters) – Gold fell more than 1% on Monday as investors locked in profits following an earlier rally to an eight-week high. Market attention shifted to escalating Israel-Iran tensions and the upcoming U.S. Federal Reserve policy meeting.

Spot gold declined 1.2% to $3,392.86 per ounce by 1:53 p.m. EDT (1753 GMT), after briefly reaching its highest level since April 22 earlier in the day. This followed a gain of over 1% on Friday.

“Gold has been climbing in recent sessions, primarily driven by the ongoing conflict between Israel and Iran,” said David Meger, Director of Metals Trading at High Ridge Futures. “Today’s decline appears to be a pullback, likely the result of profit-taking after that upward move.”

In the latest geopolitical developments, Iran urged U.S. President Donald Trump to pressure Israel into a ceasefire, calling it the only path to ending the four-day aerial conflict. Israeli Prime Minister Benjamin Netanyahu, however, declared that Israel remains on the “path to victory.”

Elsewhere, leaders of the Group of Seven (G7) nations have convened in Canada for their annual summit.

On the market front, U.S. stock index futures edged higher, while the U.S. dollar weakened slightly in volatile trading conditions.