By Gold prices drifted lower on Monday with investors monitoring the developments in the Middle East, and looking ahead to some crucial U.S. economic data.
The dollar’s weakness, and a drop in U.S. bond yields helped limit the yellow metal’s downside.
The dollar index dropped to 106.60, losing about 0.55%.
Gold futures for December ended down $6.60 at $1,987.80 an ounce.
Silver futures for December settled lower by $0.294 at $23.210 an ounce, while Copper futures for December ended up $0.0235 at $3.5865 per pound.
“Gold prices are slightly softer after a lack of an escalation in the Middle East. It seems the surge above the $2000 level won’t attract momentum buying until it becomes clear that the geopolitical risks won’t be cooling,” says Edward Moya, Senior Market Analyst at OANDA.
“The surge in Treasury yields are typically bad news for gold, but confidence is growing that these high rates will break large parts of the economy. The peak in rates might not be determined by US growth exceptionalism, but the supply/demand imbalances with Treasuries,” adds Moya.
On Friday, the Commerce Department is due to release its report on personal income and spending, which includes readings on inflation said to be preferred by the Federal Reserve.
Traders are also likely to keep an eye on reports on new home sales, durable goods orders, pending home sales and initial jobless claims in the coming days.
