Investing.com– Gold prices pared earlier losses to remain record highs in Asian trade on Monday as easing concerns over a bigger conflict in the Middle East dented safe haven demand for the yellow metal.
At 13:11 ET (18:11 GMT), Spot gold fell 0.3% to $2,740.90 an ounce, while gold futures expiring in December fell 0.1% to $2,752.75 an ounce just shy of record highs of 2,772.60.
The dollar retreated from session highs, helping commodities including gold to pare some losses.
Middle East fears ease after Israeli strike
Concerns over a bigger conflict in the Middle East eased after Israel did not attack Iran’s oil and nuclear facilities in a strike over the weekend.
While Tehran did threaten retaliation for the attack, Iranian leaders also downplayed the impact of the Israeli strike.
Concerns over Israel’s attack on Iran- over an early-October strike- had been a key point of uncertainty for markets, especially on fears that any damage to Iran’s oil or nuclear infrastructure would mark a dire escalation in the conflict.
This notion had fueled safe haven demand for gold over the past month, with the yellow metal still remaining in sight of recent peaks.
Increased uncertainty over the U.S. presidential election is also expected to spur safe haven demand, especially with recent polls showing a tight race between Donald Trump and Kamala Harris. But the dollar appeared to be benefiting more from this uncertainty.
Other precious metals fell amid strength in the dollar. Platinum futures fell 0.8% to $1,026.90 an ounce, while silver futures fell 1% to $33.435 an ounce.
Copper retreats with more economic cues on tap
Among industrial metals, copper prices fell on Monday with focus turning to a slew of key economic readings due this week.
Benchmark copper futures on the London Metal Exchange fell 0.3% to $9,553.00 a ton, while December copper futures fell 0.2% to $4.3622 a pound.
The red metal was nursing steep losses through November as traders were largely underwhelmed by more stimulus measures in top copper importer China.
Data released over the weekend showed China’s industrial profits fell sharply in September. Purchasing managers index data from the country for October is due later in the week and is set to provide more cues.
Gross domestic product data from the U.S. and euro zone is also on tap this week, as is PCE price index data- the Federal Reserve’s preferred inflation gauge.
This post is originally published on INVESTING.
