2019.07.2207:13:00UTC+00Gold Holds Steady In Cautious Trade

Gold prices held steady on Monday after steep losses in the previous session.

Spot gold edged up 0.1 percent to $1,427.01 per ounce after falling 1.5 percent in the previous session. U.S. gold futures were marginally higher at $1,427.65 an ounce.

The U.S. dollar drifted higher today as hopes faded for aggressive Fed rate cuts in July and Gulf tensions supported safe-haven bids.

Geopolitical tensions remain high after Iran said that it had arrested 17 Iranian citizens on charges of spying for the United States and some of them have already been sentenced to death.

Those taken into custody worked on "sensitive sites" in the country's military and nuclear facilities, an Iranian intelligence official told a press conference in Tehran.

The announcement comes amid heightened tensions in the Persian Gulf region following U.S. President Donald Trump's decision to pull the United States out of Tehran's deal last year and intensify sanction on the country.

There was no immediate comment from Washington.

Investors now await the outcome of tomorrow's U.K. leadership election and Thursday's ECB meeting for further direction.

The U.S. Federal Reserve is likely to lower U.S. interest rates by 25 basis points at its July 30-31 meeting.