Gold Retreats as Middle East Tensions Lift US Dollar

Gold prices retreated on Friday as renewed tensions in the Middle East lifted the US dollar, making gold more expensive for international buyers. The precious metal fell 0.75% to $4,072.11 per ounce from its opening level of $4,103.48.

The decline was driven by profit-taking and a stronger US dollar, which makes dollar-denominated gold more expensive for holders of other currencies.

Despite the drop, gold remains on track to post its first monthly gain in five months, supported by bargain buying around the key $4,000-per-ounce level and reduced expectations for additional US interest rate hikes this year.