Gold edged lower on Monday as European shares rebounded on easing tensions in Ukraine, but a flat dollar and depressed U.S. Treasury yields limited losses and kept the metal’s prices around the $1,300 mark.
Russia’s foreign ministry said on Monday “certain progress” was achieved during talks between Russia, Germany, France and Ukraine in Berlin on Sunday about ways to end the military conflict in eastern Ukraine.
Spot gold fell 0.3 percent to $1,300.00 by 1158 GMT, while U.S. gold futures for December delivery were down 0.4 percent at $1,301.30.
The dollar was flat against a basket of currencies after a sixth straight weekly loss, and the yield on the benchmark 10-year U.S. Treasury note was close to a 12-month low hit the previous week.
Returns from U.S. bonds are closely watched by the gold market, given that the metal pays no interest.
The market was awaiting the annual meeting of central bankers in Jackson Hole on Thursday for clues about the timing of interest rate increases, while Federal Reserve chief Janet Yellen was due to speak on Friday.
The U.S. central bank is expected to raise rates in the middle of next year, depending on the strength of the economy. Higher interest rates would encourage investors to withdraw money from non-interest-bearing assets such as gold.
via Reuters 
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