Gold was a little choppy overnight in a range of $1341.25 - $1348.65.

It traded up during early during Asian hours in response to the American, British and French retaliatory air strikes against Syria, taking out some light resistance at Friday’s $1347 high to reach $1348.65.

However, the advance was limited, and failed to lift gold past options resistance at $1350 as the strikes were largely expected and didn’t seem to further escalate the situation.

The yellow metal dipped to its $1341.25 low during early European time as the US dollar rose (DX to 89.83), helped by a weaker than expected reading on German Wholesale Prices that softened the euro ($1.2342 - $1.2324) and some hawkish comments by the usually dovish Kashkari.

He said that recent steps by the federal government to stimulate economic growth including tax cuts made reaching a 2% inflation objective more likely, and means the Fed can most likely move ahead with additional planned interest-rate hikes this year[1].

Later during European hours, the DX retreated to 89.51, hurt by gains in sterling ($1.4237 - $1.4320) and the euro ($1.2373), and boosted gold back to the $1345 area ahead of the NY open.

Mostly firmer global equities were a headwind for gold with the NIKKEI up 0.3%, the SCI off  1.5%, Eurozone shares ranged from -0.4% to +0.2%, and S&P futures were +0.6%.  A dip in oil (WTI $67.16 - $66.12, fears of escalating tensions on Syria waned, Baker-Hughes rig count +7 to 815 – highest since 3/2015) weighed on equities.

At 8:30 AM, a stronger than expected reading on US Retail Sales helped drive US stock futures higher (S&P futures +20 to 2678), and brought the US 10-year bond yield up to 2.865% (3-week...

Read more from our friends at Gold & Silver