LONDON: Gold edged higher on Monday as the dollar fell, but gains were muted as financial markets bet that air strikes on Syria would not escalate into a wider conflict.

Prices have trended sideways since January, buoyed by geopolitical worries but capped by expectations for further US interest rate hikes and strong technical resistance at $1,360-$1,365 an ounce — their January, February and April highs. Spot gold was at $1,346.91 an ounce at 1335 GMT, up 0.1pc, while US gold futures were 0.2pc higher at $1,350.10 an ounce.

Forces from the United States, Britain and France targeted Syria with air strikes on Saturday, hitting what they said were three of its main chemical weapons facilities.

Gold prices reached an early high of $1,348.69 on the back of the news, but struggled to maintain those gains on expectations the attacks would not mark the start of greater Western involvement in the conflict.

Dealers trimmed their short positions in silver by 3,187 contracts to 36,417 contracts, the CFTC data showed. Silver was up 0.6pc at $16.72 an ounce, while platinum was 0.3pc higher at $929.80 an ounce. Palla­dium was 1.8pc higher at $1,005.30 an ounce, off an earlier near seven-week high of $1,007.70.

Published in Dawn, April 17th, 2018