Gold prices edged lower as investors took some profit after the metal rose for four consecutive sessions last week, though the prices were supported by a muted dollar on Federal Reserve’s concerns over the global economy.
Spot gold was down 0.1 percent at $1,219.98 per ounce, as of 07:45 GMT, having gained about 0.7 percent in the previous session.
U.S. gold futures were down 0.3 percent at $1,219.6 per ounce.
“After four days of upside, gold is at a normal profit booking level ... 1,225-1,230 is a resistance zone for gold,” said Vandana Bharti, assistant vice-president of commodity research, SMC Comtrade Ltd.
The dollar declined about 0.5 percent in the previous session as Fed policymakers signalled further interest rate increases ahead, but also raised muted concerns over a potential global slowdown, leading markets to suspect the tightening cycle may not have much further to run.
The possibility that the Fed might hold a neutral outlook beyond 2018, and a slowdown in the global economy amid the ongoing U.S.-China trade spat will keep investors a little more interested in gold’s safe haven appeal, said Benjamin Lu, a commodities analyst, Phillip Futures.