Gold prices fell slightly in the trading session on Monday as the USD maintained its upward momentum, while investors remained cautious, watching for the possibility of Iran retaliating against US airstrikes on nuclear facilities.
Spot gold fell 0.2% to $3,359.99/ounce at 8:20 a.m. (ie 202 p.m. Vietnam time). US gold futures fell 0.3% to $3,375.20 an ounce.
The US dollar rose 0.4% against other currencies, making gold more expensive for foreign buyers.
Ole Hansen, head of commodity strategy at Saxo Bank, said: Higher energy prices could delay the US Federal Reserves (FED) interest rate cut and strengthen the USD.
He added that continued and multidimensional geopolitical uncertainties will continue to support and prevent gold prices from adjusting further.
Iran and Israel responded to each other's missile and airstrike attacks, as the world awaited Tehran's response after the US attack on Iran's nuclear facilities. US President Donald Trump also mentioned the possibility of regime change in this Islamic Republic.
Iran has said it will defend itself after the US dropped a 30,000-pound leaked bomb on a mountain above Iran's Fordow nuclear facility.
The US airstrike increased uncertainty about inflation prospects and economic growth. This week, the market is also under pressure as it rushes to receive economic data and follow Fed Chairman Jerome Powell's two-day hearing before the National Assembly.
Last week, the FED kept interest rates unchanged but lowered the prospect of cutting interest rates due to the more difficult economic situation. Investors are now expecting a total of 50 basis points cut by the Fed by the end of this year, starting in October.
Gold often benefits in a low interest rate environment and when uncertainty increases.
In other precious metals, spot silver rose 0.4% to $36.12 an ounce, platinum rose 2.3% to $1,293.9/ounce, while gold rose 2.5% to $1,070.33 an ounce.
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