2019.05.2008:06:00UTC+00Gold Hits Two-week Low As Dollar Strengthens

Gold prices fell to a more than two-week low on Monday as rising geopolitical risks, trade worries and robust U.S. data helped support demand for the U.S. dollar.

Spot gold slipped 0.1 percent to $1,276.41 an ounce at 1025 GMT, after having touched $1,273.22, its lowest level since May 3. U.S. gold futures held largely steady at $1,276.15.

The dollar index held firm near a two-week high amid expectations that Fed policymakers will strike a broadly neutral stance this month.

With trade tensions escalating, the Fed minutes, due on Wednesday, will provide clues as to whether the U.S. central bank will have to cut interest rates in the coming months.

Alphabet Inc's Google has suspended business with Huawei and German chipmaker Infineon Technologies also reportedly suspended shipments to the Chinese telecom giant, adding another dimension to the U.S.-China trade war.

In the Middle East, Iran was served a new warning by U.S. President Donald Trump, who tweeted that if the country wanted to fight, that would be Iran's "official end".