Investing.com - Gold prices remained at seven-week lows on Monday, as the U.S. dollar remained supported by hopes for a rate hike and a tax reform plan before the end of the year, although concerns following a mass shooting in Las Vegas could heighten safe-haven demand.
Comex gold futures were down $8.03 or about 0.63% at $1,276.79 a troy ounce by 08:30 a.m. ET (12:30 GMT), their lowest since August 16.
The dollar remained supported after Federal Reserve Chair Janet Yellen indicated last week that the central bank was sticking to plans for a third rate hike this year.
The dollar received an additional boost from fresh hopes for U.S. tax reform after the Trump administration outlined plans for a sweeping overhaul of the U.S. tax code last Wednesday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.61% at a 93.48, the highest since August 23.
Gold is sensitive to moves higher in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
But investors were cautious after a gunman opened fire at a country music festival on the Las Vegas Strip late Sunday, killing at least 50 people and wounding more than 200 others before the suspect was killed by police.
The death toll would make the attack the deadliest mass shooting in U.S. history.
Elsewhere on the Comex, silver futures slid 0.33% to $16.62 a troy ounce.