NEW YORK: Gold eased on Monday, taking a breather after a historic rally driven by US monetary easing and heightened Middle East tensions, which put it on course for its best quarter since 2020.
Spot gold was down 0.9% at $2,634.01 per ounce as of 1439 GMT.
US gold futures fell 0.5% to $2,655.40.
Gold has risen 13% so far this quarter, which would be its best since early 2020, having hit an all-time high of $2,685.42 on Thursday, fuelled by the US Federal Reserve’s half-percentage-point cut and flare-ups in the Middle East.
“There may be some rotation out of precious metals into shares, but I don’t think that’s going to last... undoubtedly, the trend is up in gold,” said Peter A. Grant, vice president and senior metals strategist, Zaner Metals.
Analysts said bullion’s run was reined in by profit-taking and a surge in Chinese stocks.
When risk appetite rises, investors generally shy away from safe-haven gold, although its recent gains have come alongside a rise in equities, especially after the Fed’s oversized cut, as lower interest rates also burnish appeal for zero-yield bullion. Traders await Fed Chair Jerome Powell’s speech later in the day, as well as ADP employment and non-farm payrolls data this week.
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