** Australian gold sub-index .AXGD falls as much as 2.6% to its lowest level since April 8, erases gains seen in previous session
** Bullion prices fell on Monday on a lack of diplomatic progress to end the U.S.-Israeli war on Iran GOL/
** Shares of major Australian gold miners Evolution Mining EVN.AX and Northern Star Resources NST.AX down 1.6% and 3%, respectively
** Sub-index down 5.9% YTD, including the day's moves
(Reporting by Shivangi Lahiri in Bengaluru)
((shivangi.lahiri@thomsonreuters.com))