Gold prices inched lower on Monday pressured by a gaining US dollar, but bullion’s losses were cushioned as growing tensions in the Middle East supported the safe-haven near last session’s over two-week highs.
Spot gold was down 0.2 percent at $2,032.3 per ounce. US gold futures edged 0.4 percent lower to $2,041.5 per ounce.
“Gold has exhibited some mild easing to kick-off the new week mostly due to the dollar ticking higher. However, geopolitical concerns have not dissipated, and this is keeping the yellow metal very much on the radar of investors from a safe-haven standpoint,” Tim Waterer, chief market analyst at KCM Trade, said.
The dollar was on the front foot ahead of a packed week filled with key economic releases that will provide further clues on the global interest rate outlook, with a US inflation reading taking center stage.
“If solid US macro data continues to create hesitation from the Fed regarding when to cut rates, this could create further headwinds for gold as investors may chase yield elsewhere,” Waterer said.
Market participants’ focus is now shifting to the Fed’s preferred inflation indicator, personal consumption expenditure (PCE) data, which is due on Thursday. – Reuters
