During Monday afternoon’s Asian trading session, spot gold traded 0.2% higher at $1,925 per ounce. The weakening of the dollar also contributed to the bullish sentiment in gold. However, the upside potential for the commodity remained limited as Wagner chief Yevgeny Prigozhin abruptly halted his advance toward Moscow.

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Additionally, higher-than-expected inflation and a surprise 50 basis points rate hike by the Bank of England have unsettled investors, leading them to consider the possibility of prolonged rate increases in the United States.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, pointed out that exchange-traded funds have been reducing their gold holdings recently.

“Four weeks of ETF selling accelerated last week, when holdings were cut by 17 tons, the most since November, reducing total holdings to a three-month low at 2899 tons. Another peak rate delay following Powell’s testimony driving XAUUSD below support towards $1900,” he said in a tweet.

The SPDR Gold Trust (NYSE:GLD) closed 0.28% higher on Friday while the iShares Gold Trust (NYSE:IAU) gained 0.25%, according to Benzinga Pro.

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