Gold prices managed to stay above $1,300 an ounce as tensions between the West and Russia heightened after increased likelihood of new sanctions.
However, with the dollar approaching multi-month highs, the precious metal slipped. The dollar hovered near six-month highs against many major currencies, holding on to solid gains made last week after positive U.S. economic data, reports Reuters.
According to Bloomberg, gold for December delivery was up 0.1 percent to $1,306.90 an ounce on the Comex in New York. It reached its highest since July 23 at $1,311.40, revived from a five-week low of $1,289.40 set on July 24.
Based off of data gathered by Bloomberg, gold futures trading volume was 42 percent over the average for the past 100 days.
Standard Bank analyst Walter de Wet said, "Gold should stay supported between $1,285 and $1,300 until Friday, when we have the big NFP day again, and depending on what happens there, it could actually then push lower again," according to Reuters.
Spot gold was down 0.3 percent at $1,303.79 per ounce. After encouraging economic data on Friday, the metal had recorded its second straight weekly drop.
Reuters reports that higher interest rates could influence investors to switch to assets that, unlike gold, pay interest.
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