London — Gold edged higher on Monday as the dollar fell, but gains were muted as financial markets bet that air strikes on Syria would not escalate into a wider conflict. Prices have trended sideways since January, buoyed by geopolitical worries but capped by expectations for further US interest rate hikes and strong technical resistance at $1,360-$1,365 an ounce — their January, February and April highs. Spot gold was at $1,346.91/oz at 1335 GMT, up 0.1%, while US gold futures were 0.2% higher at $1,350.10/oz. Forces from the US, Britain and France targeted Syria with air strikes on Saturday, hitting what they said were three of its main chemical weapons facilities. Gold prices reached an early high of $1,348.69 on the back of the news, but struggled to maintain those gains on expectations the attacks would not mark the start of greater Western involvement in the conflict. "Some of the risk (premium) has come down following the air strikes," Capital Economics analyst Simona Gambari...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.