Gold prices saw a modest rise at the start of the week, supported by dip buying and a slight decline in the US dollar, but gains remained limited amid rising expectations of a global interest rate hike.
Gold traded near $4,550 an ounce after touching $4,420 during the session, amid continued pressure from tight monetary policies that reduce the appeal of the yellow metal as a non-yielding asset.
Conversely, escalating geopolitical tensions, particularly in the Middle East, and rising energy prices have contributed to supporting demand for gold as a safe haven, amid growing concerns about a return of inflationary pressures globally.
Forecasts indicate that the continued strength of the dollar and rising yields may limit any strong rise in gold in the near term, as markets await US economic data and statements from central bank officials to determine the next direction of prices.