Gold eases on firmer dollar, profit-taking; Mideast conflict in focus

Gold prices slipped on Monday as a stronger US dollar and profit-taking following a rally late last week took hold. By 0903 GMT, spot gold had fallen 0.6% to $4,351.12 per ounce, while US gold futures declined 0.8% to $4,388.70. The rally in gold peaked at $4,399.41 per ounce on Friday, buoyed by falling oil prices which eased worries about prolonged inflation.

However, tensions in the Middle East remained a concern, with Iran and the United States exchanging new threats. Despite the slight gain in the dollar, which makes greenback-priced bullion pricier for holders of other currencies, some traders are optimistic that de-escalation in the US-Iran conflict could lower inflation fears, potentially leading to lower yields and a weaker dollar that could boost gold prices toward $5,000.

The Bank of Japan tightened monetary policy on Friday, following the Federal Reserve and the European Central Bank. Currently, there is an 88% chance a US rate hike will occur in December, according to the CME FedWatch Tool. Other metals also experienced slight changes, with silver falling 0.1% to $66.14, platinum gaining 0.2% to $1,803.57, and palladium remaining steady at $1,303.23.