Gold started the new week with a limited rise under the influence of geopolitical tensions.
Gold soared amid heightened geopolitical uncertainty in the wake of the Russian mercenary group Wagner’s attempted insurgency, as investors weighed in on recession signals.
In the spot market, gold tested $1,928 an ounce.
Despite the crisis in Russia, upside safe-haven purchases for gold were limited after Wagner leader Yevgeny Prigozhin abruptly halted his advance towards Moscow over the weekend.
Real interest rates and the dollar are more likely to be affected by lower prices, while previous examples show that rallies triggered by geopolitical risks tend to be short-lived.
Prices continue to trade below the 100-day moving average, a key support level that was surpassed earlier this month as US and European central banks expect further monetary tightening to prevail.