WASHINGTON (dpa-AFX) - Gold futures failed to retain early gains and settled with a slender gain on Monday, as the dollar extended recent gains amid fading possibilities of a steep interest rate cut in the near-term by the Federal Reserve.
Lingering worries about geopolitical tensions, global economic slowdown and uncertainty about U.S.-China trade negotiations supported the yellow metal and limited its loss.
The dollar index advanced to 97.42 and stayed fairly steady. It was last seen hovering around 97.35, gaining about 0.7% over previous close.
Gold futures for August settled at $1,400.00 an ounce, just $0.10 down from previous close.
On Friday, gold futures for August ended down $20.80, or 1.5%, at $1,400.10 an ounce.
Silver futures for September ended up $0.049, at $15.050 an ounce, while Copper futures for September settled at $2.6590 per pound, down $0.0020 from previous close.
Geopolitical tensions have increased after Iran said it will break a limit set on uranium enrichment under its 2015 nuclear accord with major world powers.
Markets look ahead to Fed Chair Powell's mid-week testimony before Congress on monetary policy and the state of the U.S. economy as investors look for clarity on the central bank's policy plans for the coming months.
The minutes of the June FOMC meeting as well as closely-watched reports on consumer and producer price inflation due this week could also have an impact on perceptions of the likelihood of an interest rate cut.
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