Gold eases on firmer dollar, profit-taking; Mideast conflict in focus
GLD•Other precious metals
Among other metals, spot silver XAG= lost 0.1% to $66.14, platinum XPT= gained 0.2% to $1,803.57, while palladium XPD= was steady at $1,303.23.
Inflation, oil and geopolitics remain in focus
Gold climbed to a one-week high of $4,399.41 per ounce on Friday, as lower oil prices helped ease some concerns about prolonged inflationary pressures.
Oil prices slid to their lowest in more than a week on Monday as investors hoped for diplomatic progress on the Iran war due to this week's UN meeting. O/R
But concerns remained elevated as Iran and the United States exchanged new threats on Sunday, with President Donald Trump warning Iran would fail economically or face its leadership being wiped out if it didn't make a deal, and the Iranian military saying it would retaliate harshly to any fresh attack.
"Persistent inflation and further monetary tightening could create downside towards $4,000. On the other hand, a de-escalation in the US-Iran war could ease inflationary fears, leading to lower yields and a softer dollar, which could allow gold to approach the $5,000 level," Evangelista said.
Central banks and rate expectations support caution
The Bank of Japan became the latest big central bank to tighten on Friday, following rate increases by the Federal Reserve and the European Central Bank.
Traders are now pricing in an 88% chance of a US rate hike in December, according to the CME FedWatch Tool. FEDWATCH
Though gold is seen as an inflation hedge, rising rates tend to curb demand by making interest-bearing assets more attractive.
