Bengaluru — Gold slipped on Monday as the dollar rose, but prices still held near one-month highs hit last week as political and economic uncertainty in the US dominated sentiment. Spot gold was down 0.2% at $1,292.1 an ounce at 12.41pm GMT, off Friday’s peak of $1,297, its strongest since October 16. US gold futures were down 0.3% to $1,292.20 an ounce. The dollar gained against the euro after German chancellor Angela Merkel’s efforts to form a three-way coalition government failed. Merkel said she would inform the German president that she could not form a coalition, after the pro-business Free Democrats withdrew from negotiations. The prospect of higher US interest rates in December when the Federal Reserve meets was also helping the dollar against other major currencies such as the yen. "For gold, there are headwinds in the guise of US interest rate rises, which means higher front-end bond yield curves and an opportunity cost for holding gold," said Société Générale analyst Robi...
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