Gold prices retreated from last session’s five-month peak on Monday as the US dollar and Treasury yields strengthened ahead of crucial economic data this week, with investors looking for any signs of a global fallout of the Middle East conflict.
Spot gold was down 0.4 percent at $1,972.39 per ounce, and US gold futures slid 0.5 percent to $1,983.50.
Gold prices hit their highest since mid-May on Friday and surged about 9 percent in the past two weeks as investors opted for the safety of bullion on fears that the Israel-Hamas war could escalate into a wider Middle East conflict.
A relentless rise in benchmark US Treasury yields to their highest levels in more than a decade and a half has kept prices of the non-interest-bearing gold well below near record levels of more than $2,000 an ounce hit on May 4.
“Gold prices have been riding on safe-haven flows from the Middle East conflict lately, and focus on humanitarian aid and securing hostage releases seems to suggest that a potential ground invasion from Israel can wait,” IG market strategist Yeap Jun Rong said.
“That may contain the risks of further escalation, at least for now, which may drive some near-term unwinding in prices, although any conflict escalation could easily renew traction in the safe-haven.”
