Gold retreats from 5-month high

Gold prices fell from a five-month high on Monday as global markets sought a sign of the global impact of the Middle East conflict. Gold prices fell from a five-month high last session on Monday as the dollar and Treasury yields strengthened ahead of key economic data this week and investors sought a sign of the global impact of the Middle East conflict. Spot gold fell 0.4 percent to $1,972.39 an ounce, while U.S. gold futures fell 0.5 percent to $1,983.50. Gold prices reached their highest level since mid-May on Friday and have risen about 9 percent in the past two weeks as investors sought the safety of bullion amid fears that the Israel-Hamas war could escalate into a broader Mideast conflict. A relentless rise in U.S. Treasury yields to their highest levels in more than 15 years has kept prices for interest-free gold near record levels above $2,000 an ounce set on May 4. “Gold prices have been driven by safe haven flows from the recent Middle East conflict and could pose a risk of further escalation with a possible land offensive from Israel. This could lead to some short-term softening in prices, but escalation of the conflict could revive the search for safe havens,” said IG market strategist Yeap Jun Rong.