Gold held a five-day drop on speculation that the Federal Reserve will soon raise U.S. interest rates, which eclipsed the short-term increase in haven demand following the terrorist assault in Paris.
Bullion for immediate delivery traded at $1,083.63 an ounce at 8:12 a.m. in Singapore from $1,082.76, according to Bloomberg generic pricing. On Monday, the metal advanced as much as 1.3 percent as investors weighed the violence, before ending 0.1 percent lower.
Demand for haven assets faded over the course of the first trading day since the attacks on Friday, in line with the history of reactions to terror incidents around the world over the last 15 years, which showed market moves have become increasingly short-lived. Investors’ focus returned to the outlook for U.S. borrowing costs, and inflation figures set for release on Tuesday will provide additional clues on whether the Fed will tighten.