London — Gold edged higher on Monday, taking support from a retreat in the dollar as Italian political risk receded, but the prospect of a further US interest rate rise by the Federal Reserve in June kept a lid on gains. The metal fell on Friday after stronger than expected US payrolls data shored up the expectation that the Fed would press ahead with another rate increase at its June meeting. Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding bullion. They also boost the dollar, in which the metal is priced. Spot gold was up 0.1% at $1,293.89/oz at 9.52am GMT, while US gold futures for August delivery were 0.1% lower at $1,297.90/oz. The strength of the interest-rate hiking cycle in the US was outweighing other factors for the moment, Julius Baer analyst Norbert Rucker said. "Investment demand for gold is just not strong enough to lift the price sustainably," he said. "Near term the US interest rate hiking cycle is driving prices, and ...
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