Gold prices fell today, Monday, from their highest levels in five months last session, with the rise in the dollar and Treasury bond yields ahead of vital economic data this week, along with investors looking forward to any sign of negative repercussions globally resulting from the conflict in the Middle East.
The spot price of gold fell by 0.3%, to 1,975.99 per ounce, at 0552 GMT, and gold futures contracts fell by 0.4% to $1,987.30 per ounce.
Gold reached its highest levels since mid-May on Friday, rising by 9% over the past two weeks, with investors preferring the safety of the yellow metal against the backdrop of fears of the conflict between Israel and Hamas escalating into a broader conflict in the Middle East.
Yap Jun Rong, market strategist at DIG, said that gold prices began to rise against the backdrop of safe haven flows as a result of the recent Middle East conflict.
But the analyst added that the focus on humanitarian aid and the release of prisoners seems to indicate the possibility of postponing a ground invasion of Israel, which would contain the risks of further escalation, at least for the time being, and thus lower prices somewhat in the short term, although any escalation of the conflict It would easily renew the flow into safe assets.
Gold speculators shifted to net buying positions of about 41,867 contracts during the week ending on October 17, according to data issued on Friday.
TD Securities analysts said it may take more instability, such as expanding conflict in the Middle East, for gold to continue its rise.
Analysts expect the yellow metal to trend downward, in light of higher interest rates for a longer period and the strength of the dollar.
Aside from geopolitical tensions, investors will focus on the US Personal Consumption Expenditure (PCE) price index - the Fed's preferred inflation gauge - along with third-quarter US GDP data, the European Central Bank's interest rate decision and global PMIs.
The spot price of silver fell by 0.4% to $23.25 per ounce, and platinum by 0.4% to $891.07.