Gold prices slipped on Monday as market participants assessed developments in the Middle East and their implications for inflation and interest rates.
Spot gold fell 0.3 per cent to $4,362.60 per ounce by 0417 GMT after hitting a one-week high on Friday. US gold futures were down 0.6pc at $4,400.20.
“The focus remains on geopolitics, oil and the reaction in bond yields. For gold to gain meaningful upside traction, a clear move lower in oil and/or bond yields is likely required,” said Tim Waterer, chief market analyst at KCM Trade.
“Gold may trade in a roughly $4,200 to $4,580 range in the near term.”
Oil prices fell on hopes diplomacy in the Iran war will get a chance this week amid a UN meet and as investors eyed a partial recovery in shipments from Saudi Arabia despite ongoing attacks by Yemen’s Houthis.
