WASHINGTON (dpa-AFX) - Gold prices traded lower on Monday as Middle East worries ebbed and the dollar strengthened ahead of a busy week for earnings and economic data releases.
Spot gold dipped 0.6 percent to $2,731.78 per ounce in European trade while U.S. gold futures were down 0.4 percent at $2,743.70.
Israel's retaliatory attack on Iran over the weekend avoided oil and nuclear facilities, and Tehran signaled a measured response, helping ease concerns over a potential war in the Middle East.
Also, Egypt has proposed a two-day truce in Gaza aimed at securing 'a complete ceasefire' after more than a year of war between Israel and Hamas.
The dollar held firm, reaching its strongest in three months against a basket of currencies amid uncertainty over the U.S. presidential election outcome and ahead of key U.S. inflation, GDP and labor market data due later in the week.
Treasury yields also pushed higher, with Eurozone government bond yields reaching fresh multi-week highs amid lingering concerns the Federal Reserve will lower interest rates slower than previously anticipated.
The Fed is still widely expected to lower rates by a quarter point next month, but CME Group's FedWatch Tool currently indicates a 24.0 percent chance the central bank will leave rates unchanged in December.
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