Gold was bought on dips in early Asian trading on Monday. The price of gold rebounded slightly above 3,900 US dollars/ounce, recovering some of its losses. However, as high oil prices and concerns about inflation have heightened market expectations for a US interest rate hike, there seems to be limited room for gold prices to rise. As traders expect continued tension in the Middle East, US employment data may increase the probability of interest rate hikes, and the uncertainty brought about by the midterm elections, the price of gold is likely to continue to be under pressure for some time to come. Simon-Peter Massabni, head of business development at XS.com, said that the decisive factor is whether the upcoming economic data will change the Federal Reserve's monetary policy. Despite some current factors supporting the medium- to long-term outlook, gold is likely to continue to face selling pressure.

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