(MENAFN- ProactiveInvestors) Gold prices were marginally lower today as the dollar gained traction against major currency rivals on signs the is preparing to tighten monetary policy for the first time in six years in 2015.
Fed Chair Janet Yellen indicated on Friday that the U.S. central bank was poised to raise rates this year with the world's largest economy set to bounce back from an early-2015 slump.
Higher U.S. interest rates increases the opportunity cost of holding non-yielding bullion.
Spot gold was down 0.1 percent at $1205.06 an ounce by 09:39 a.m. but held above a near-two-week low of $1201.20 hit in the previous session. It posted its biggest weekly drop in a month last week down 1.4 percent.
Liquidity was thin with British and U.S. markets shut for holidays.
In energy trading crude oil futures rose today as firm global demand overshadowed a strong dollar although a holiday in the United States and much of Europe kept trading muted.
Front-month Brent crude gained $0.53 to $65.90 a barrel by 01:50 p.m. after touching an intraday low of $64.72.
U.S. crude was up $0.08 cents at $59.80 a barrel.
The market drew support from figures showing strong demand across Asia and the United States.
Japan's customs-cleared crude oil imports rose 9.1 percent year-on-year to 3.62 million barrels per day in April the Finance Ministry said.
In China crude imports hit a record 7.4 million bpd last month with healthy car sales countering a slowing economy.
In the United States the peak summer driving season started with Memorial Day today and the American Automobile Association said road travel was expected to reach a 10-year high over the long weekend.
The dollar held near two-month highs against the euro and yen as well as a one-month peak against a basket of currencies.
A strong dollar makes greenback-denominated crude oil less attractive for holders of other currencies.
Iran plans to raise its oil output by 170000 bpd by March 2016 the official IRNA news agency cited an Iranian oil official as saying.
Iran a member of the Organization of the Petroleum Exporting Countries (OPEC) aims to boost crude exports by up to 1 million bpd if Tehran and six major powers finalize a nuclear agreement by a June 30 deadline.
Unrest in the Middle East intensified on Monday as Islamic State poured fighters into the western Iraqi city of Ramadi.
In oil exporter Libya warplanes from the official government attacked an oil tanker docked outside the city of Sirte on yesterday wounding three people and setting the ship on fire officials said.
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