Gold’s losses last week were driven by reduced haven appetite following a US-brokered cease-fire deal between Israel and Hezbollah that came into effect mid-week. Still, fears about an escalation in Russia’s war on Ukraine continue to support demand for safe assets such as gold.
Gold eased, pressured by a rising US dollar after President-elect Donald Trump warned the so-called BRICS nations that he would require commitments that they would not move to create a new currency.
Bullion traded around US$2,635 ($3,541.61) an ounce in early Asia hours on Monday after declining almost 3% last week. Trump’s warning buoyed the dollar, with a stronger greenback making the precious metal more expensive for buyers in other currencies.
