Gold started the Asian trading session lower around $2,430 on Monday following a modest recovery in the USD and a cap amid geopolitical tensions in the Middle East.
At 9.20am, the price of gold was at $2,429.03 which is down 0.10% since it opened in early trading in the mid-August week.
Tensions in the Middle East continue to drive the movement of gold prices now that the news about the war has intensified.
On Sunday, Israeli Defense Minister Yoav Gallant informed US Defense Secretary Lloyd Austin that Iran's military preparations were preparing for a major attack.
Elevated vindictiveness and geopolitical risks are likely to increase the flow of the traditional yellow metal at the peak of prices.
If there is a fall this week, it may be due to macroeconomic factors at the global level, especially the latest report of the United States economy.
For now, investors will continue to focus on the aggressive actions of the Federal Reserve (Fed) in setting its monetary policy, whether it is a rate cut of 50 basis points or 25 basis points.
The main US economic data this week will focus on the release of the US Producer Price Index (PPI), Consumer Price Index (CPI) and Retail Sales.
Stronger-than-expected data is likely to delay the Fed's move to make deeper rate cuts and this will continue to support gold's position.
