Gold prices fell sharply on Monday, with spot gold dropping 1.1 percent to $4,043.25 an ounce and U.S. gold futures down 0.90 percent at $4,059.45 an ounce. The decline comes amid fresh U.S.-Iran tensions and rate hike jitters, which weighed on the precious metal's safe-haven appeal. The U.S. dollar was on track for its best monthly performance in nearly a year, while Brent crude futures rose above $72 a barrel, recovering from four-month lows. Meanwhile, Hezbollah's leader rejected the Israel-Lebanon framework agreement as "null and void," warning it could trigger civil war. This week, markets will focus on the U.S. ISM manufacturing PMI, the June U.S. jobs report, and June PMI data from major economies, as well as the ECB's Forum on Central Banking in Sintra, Portugal, where Fed Chair Kevin Warsh will make his first international appearance.