Gold Sinks as Stronger Dollar and Profit-Taking Take Hold
Gold prices edged lower on Monday due to a stronger US dollar and profit-taking after last week's rally. Spot gold fell 0.6% to $4,351.12 per ounce by 0903 GMT.
The dollar gained, making greenback-priced bullion more expensive for holders of other currencies, according to Ricardo Evangelista, ActivTrades Director and CEO.
Evangelista noted that the slightly firmer US dollar added pressure on gold, while some profit-taking after Friday's rebound was also playing a role. The precious metal climbed to a one-week high of $4,399.41 per ounce last Friday as lower oil prices eased concerns about prolonged inflationary pressures.
Oil prices slid to their lowest in more than a week on Monday, with investors hoping for diplomatic progress on the Iran war due to this week's UN meeting. However, tensions remained elevated as Iran and the United States exchanged new threats on Sunday.