Gold prices fell on Monday due to technical selling after a strong rally in the previous session, although concerns over potential escalation of conflict in the Middle East kept bullion above the psychologically key $1,900 per ounce level. Spot gold fell 0.9% to $1,915.19 per ounce by 1012 GMT after hitting its highest since Sept. 20 earlier in the session. U.S. gold futures dropped 0.7% to $1,927.80.
“Gold is holding up well because we still have a lot of uncertainty related to the Middle East and the potential for that to evolve into something very serious,” said Ole Hansen, head of commodity strategy at Saxo Bank. “We need to see whether there is enough movements in bonds and dollar to support these current levels or any further escalation in the Middle East, is what is required to send gold prices higher.”
