Gold post soft declines as geopolitical jitters subside

A A A - - Gold prices slipped on Monday on Russia's decision to conclude military exercises on its border with Ukraine, while a cease fire in Gaza also chipped away at the yellow metal's safe-haven appeal.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at 1,310.40 a troy ounce during U.S. trading, down 0.05%, up from a session low of $1,306.50 and off a high of $1,312.80.

The December contract settled down 0.11% at $1,311.00 on Friday.

Futures were likely to find support at $1,283.30 a troy ounce, last Tuesday's low, and resistance at $1,324.30, Friday's high.

Reports that Russia has ended the military exercises it was conducting near the Ukraine border gave the dollar room to rise on Monday in a session void of major market-moving indicators, which ate into gold's appeal as a hedge.

Gold and the dollar tend to trade inversely with one another.

Russian President Vladimir Putin said Moscow is working with the International Red Cross to send humanitarian aid to Ukraine, which also gave the greenback support.

Meanwhile in the Middle East, a 72-hour ceasefire between Israel and Hamas in Gaza took effect on Sunday, which gave the dollar further room to rise by allaying concerns that geopolitical tensions will dampen global growth and possibly prompt the Federal Reserve to take more time analyzing the economy before raising interest rates.

A U.S. decision to launch airstrikes in Iraq to halt a Sunni insurgency gave the greenback support as well, as fears that the country was on the edge of chaos continue to wane on Monday.

Still, lulls in conflicts have happened in the past, and investors priced in the possibilities that flare ups were possible in Ukraine and in the Middle East, which cushioned gold's declines.

Meanwhile, silver for September delivery was up 0.66% at $20.072 a troy ounce, while copper futures for September delivery were up 0.06% at $3.176 a pound. offers an extensive set of professional tools for the financial markets.
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This article appears in: Investing , Forex and Currencies

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