Gold prices fell on Monday from a five-month high reached in the previous session as the dollar strengthened and U.S. Treasury yields increased ahead of important economic data expected this week. Meanwhile, investors are looking for any signs of global repercussions from the ongoing conflict in the Middle East. By 05:52 GMT, spot gold had declined 0.3% to $1,975.99 per ounce, and U.S. gold futures dropped 0.4% to $1,987.30.
Gold prices reached their highest level since mid-May on Friday and have risen nearly 9% over the past two weeks as investors flocked to safe-haven assets amid fears of the Israel-Hamas war escalating into a wider regional conflict.
Yip Jun Rong, a market strategist at IG, stated, "Gold prices have been rising supported by flows seeking safe haven in light of the Middle East conflict lately, and it appears that the focus on humanitarian aid and securing the release of hostages indicates that the potential ground invasion could be delayed."
Apart from geopolitical developments, investors are eyeing a set of economic data, including the Personal Consumption Expenditures Price Index, which is the Federal Reserve's preferred inflation measure, U.S. GDP figures for the third quarter, the European Central Bank's interest rate decision, and preliminary Purchasing Managers' Indexes from around the world.
For other precious metals, silver fell in spot trading by 0.4% to $23.25 per ounce, platinum declined 0.4% to $891.07, while palladium rose 0.3% to $1,100.84.
