Dollar Strength Weighs on Gold Prices Amid Middle East Tensions
Gold prices edged lower on Monday as investors took profits after last week's rally and a stronger US dollar weighed on the metal. Spot gold fell 0.6% to $4,349.99 per ounce by 10:46 GMT.
The dollar's gain made greenback-priced bullion more expensive for holders of other currencies, adding pressure to gold prices. Ricardo Evangelista, Director and CEO at ActivTrades, said 'The slightly firmer US dollar is adding to the pressure in gold, while some profit-taking after Friday's rebound is also playing a role.'
The conflict in the Middle East remains a concern for market participants, with oil prices sliding to their lowest in over a week. Investors hope that diplomatic progress at this week's UN meeting will ease tensions and reduce inflationary pressures.