Gold prices bobbed in and out of negative territory Monday as stocks headed higher in a relief rally pinned on hopes the U.S. may not be dragged into a deeper conflict with Syrian allies Russia and Iran, dulling demand for haven assets overall.
Gold did briefly pare losses after a round of mixed economic data, though those reports were seen doing little on their own to dissuade the Federal Reserve from modest, gold-negative interest-rate hikes over coming months.
In recent trading, June gold changed hands little changed near $1,348.10 an ounce.
Gold sputtered to start the new week even as the dollar mostly weakened, challenging their typically inverse relationship. The ICE U.S. Dollar Index which measures the greenback against six major rivals, traded down 0.3% at 89.53. U.S. stocks, meanwhile, were expected to open with considerable gains.
Markets have tempered their reaction to news the U.S. joined with allies France and Britain to launch missiles late Friday that destroyed much of Syria’s chemical-weapons capabilities.