Gold slipped for a second session on Monday, after facing resistance at $1313, on weak physical demand, yet the escalating geopolitical tensions in Ukraine and the Middle East helped prices to hold above $1300.
Last week, the shiny metal failed to record a second weekly advance despite some downbeat data and comments from major economies.
Perhaps the weak physical demand from major buyers China and India has prevented metal from continuing it rise.
Still, Asian buyers are predicting the price to fall further, where some see the price falling back to $1285 levels.
Nevertheless, the tensions in Ukraine and the Middle East are giving some haven demand to gold prices.
“Ukrainian forces have raised their national flag over a police station in the city of Luhansk that was for months under rebel control, Kiev said on Sunday, in what could be a breakthrough in Ukraine`s efforts to crush pro-Moscow separatists,” Reuters said.
The U.S. dollar inched up today versus a basket of major currencies, following its drop from 11-month high on Friday. The dollar index rose to 81.50 after touching a low of 81.42
Gold is currently trading around $1300.62 after hitting a high of $1304.48 and a low of $1297.31.
Crude Oil for October’s delivery retreated to trade around $94.63 after hitting a bottom of $94.60.