Gold Prices Swing between Small Gains and Losses

© Reuters. Gold swings between small gains and losses

Investing.com - Gold prices swung between small gains and losses on Monday despite heightened geopolitical risk as markets assessed the fallout from U.S.-led missile strikes on Syria on Friday.

Gold futures for June delivery on the Comex division of the New York Mercantile Exchange edged up 60 cents or 0.04% to $1,348.50 a troy ounce by 04:40 AM ET (08:40 AM GMT).

Safe haven demand for gold was held in check by relief that the missile strikes on Syria did not prompt a response from Russia, Syria’s main ally, but markets remained watchful for any signs of escalation of the conflict.

U.S. futures rose, pointing to a higher open on Wall Street as the market mood brightened.

The military strikes were made in response to a suspected chemical-weapon attack on civilians in Damascus and were the largest intervention yet by Western countries against Syrian President Bashar al-Assad.

Investors tend to seek out gold as a store of value during times of market turmoil and political tensions.

Rising geopolitical tensions have pulled focus away from fears over a U.S.-China trade spat, which had gripped global financial markets in recent weeks.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.23% to 89.30. A weaker dollar makes the dollar-denominated metal less expensive for holders of other currencies.

In other precious metal trade, silver futures fell 0.35% to $16.60 a troy ounce, while platinum futures dipped 0.08% to trade at $932.40.

Among base metals, copper futures were down 0.13% to $3.067 a pound.