Spot Gold eased in a volatile trade on Monday on the back of a firmer US Dollar, as market players continued to monitor the escalating conflict in the Middle East in the wake of the US strike on crucial Iranian nuclear facilities over the weekend.
Investors were also on watch for what the Islamic state’s response could be.
“The U.S. strikes on Iranian nuclear facilities resulted in the dollar receiving safe haven buying flows in the currency market,” KCM Trade Chief Market Analyst Tim Waterer was quoted as saying by Reuters.
“This USD uptick had pegged gold back and caused an uncharacteristically subdued performance from the precious metal despite risks stemming from the conflict.”
US President Trump on Sunday raised the question of a regime change in Iran, while senior US officials warned Tehran against retaliation.
In the meantime, Iran and Israel continued to exchange missile attacks.
The US Dollar Index was last up 0.26% to 99.034.
A firmer dollar makes dollar-priced Gold less appealing to international investors holding other currencies.
Fed Chair Jerome Powell is expected to testify before Congress over two days, as he will likely cover the potential impact of the Trump administration’s tariffs and the attack on Iran.
Spot Gold was last down 0.38% on the day to trade at $3,356.11 per troy ounce.
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