Gold prices dipped in Asia on Tuesday as investors continued to eye political risk in the Middle East but shied away from new buying as the dollar rebounded regionally.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell 0.17% to $1,279.44 a troy ounce. Copper futures on the Comes fell 0.16% to $3.154 a pound.
The U.s. dollar index rose 0.06% to 94.68 after dropping sharply overnight.
Overnight, gold prices traded sharply higher on Monday as political uncertainty in the Middle East fuelled safe-haven demand. Gold prices are sensitive to moves lower in the U.S. dollar – A lower dollar makes gold cheaper for holders of foreign currency, thus, increases demand.
Gold prices made a strong start to the week as investors piled into the precious metal amid growing political uncertainty in the Middle East after Saudi Crown Prince Mohammed bin Salman led an anti-corruption drive which resulted in a series of arrests of prominent Saudi Arabians.