Dow Jones – Gold prices inched higher Monday, with some of the geopolitical risks that have supported prices throughout the year back in focus.
Gold for December delivery rose 0.3% to $1,272.70 a troy ounce on the Comex division of the New York Mercantile Exchange. Prices have fallen in seven of the last eight weeks and sit near three-month lows, weighed down by concerns about rising interest rates and a stronger dollar.
Gold struggles to compete with yield-bearing assets like Treasuries as borrowing costs rise, while the precious metal and other dollar-denominated metals become more expensive for foreign buyers when the US currency rises.
Still, geopolitical risks have kept a floor on prices and should continue supporting gold moving forward, investors and analysts have said.
On Monday, President Donald Trump pushed for Japan to buy "massive" amounts of military equipment from the US, saying that it would help the country shoot down missiles like the pair that nearby North Korea has fired overhead in recent months.
That statement came after Saudi Arabia said Yemeni rebels' missile attack on the Saudi capital Saturday could be considered an Iranian act of war. Investors have also been tracking a looming debt default for Venezuela and Catalonia's bid for independence from Spain of late.
"All of this is prompting some short covering," said George Gero, managing director at RBC Capital Markets, noting that he currently doesn't see much new buying in the market.
Investors were also keeping an eye on central-bank news. The Federal Reserve Bank of New York announced Monday that its leader William Dudley is planning to step down early and retire in the middle of next year.