Investing.com — Gold prices pared earlier losses to remain at record highs in Asian trading on Monday, as waning concerns over a wider conflict in the Middle East dampened safe-haven demand for the yellow metal.
At 13:11 ET (18:11 GMT), the price was down 0.3% at $2,740.90 per ounce, while the December expiration was down 0.1% at $2,752.75 per ounce, just below the record high of 2,772 ,60.
They retreated from session highs, allowing commodities including gold to recoup some losses.
The Middle East fears that the situation will deteriorate after the Israeli attack
Concerns about a wider conflict in the Middle East eased after Israel failed to attack Iran’s oil and nuclear facilities last weekend.
While Tehran threatened retaliation for the attack, Iranian leaders also downplayed the impact of the Israeli strike.
Concerns about Israel’s attack on Iran – an attack in early October – have been a major point of uncertainty for markets, especially amid fears that any damage to Iran’s oil or nuclear infrastructure would mean a serious escalation of the conflict.
The idea had fueled safe-haven demand for gold last month, with the yellow metal still in sight of recent highs.
Increased uncertainty over the US presidential election is also expected to boost demand for safe havens, especially as recent polls show a tight race between Donald Trump and Kamala Harris. But the dollar seemed to benefit more from this uncertainty.
Other precious metals fell due to the strong dollar. fell 0.8% to $1,026.90 per ounce, while the price fell 1% to $33.435 per ounce.
Copper is retreating with more economic signals on tap
Among industrial metals, copper prices fell on Monday, with attention turning to a slew of key economic data this week.
The benchmark on the London Metal Exchange fell 0.3% to $9,553.00 a tonne, while December fell 0.2% to $4.3622 a pound.
The red metal suffered steep losses in November as traders were largely underwhelmed by more stimulus measures in top copper importer China.
Data released over the weekend showed China’s economy fell sharply in September. data from the country for October will be released later this week and is expected to provide more clues.
Data on Federal Reserve gross domestic product is also available this week, as is data – the Federal Reserve’s favorite inflation gauge.
