Spot silver fell more than 3 percent on Monday as markets cut demand for safe-haven assets amid easing fears of a broader conflict in the Middle East.

Iran has downplayed Israel's retaliatory drone attacks against ISIS, avoiding an escalation of conflict in the region.

The yield of the US 10-year treasury bond bond rose to 4.656%, reducing the market's appeal to silver.

At the same time, Austan Goolsbee, the President of the Federal Reserve Bank of Chicago, stated that progress in reducing inflation this year has been "stagnant", suggesting that interest rates will have to remain high for a longer period of time.

Market participants are now looking forward to the key US PCE inflation data released on Friday to obtain more clues about the interest rate outlook. The annual core PCE inflation rate in the United States dropped to 2.8% in February, the lowest level in nearly three years, compared to 2.9% in January.

As of 7:19 Greenwich Mean Time on Monday, spot silver fell 3.36% to $27.718 per troy ounce. This precious metal has fallen from its peak since February 2021.

Silver futures for May delivery fell 3.81% to $27.745 per troy ounce.

The US dollar index reflects the strength of the US dollar relative to the other six major currencies, falling slightly by 0.01% on Monday to 106.105.