Ammon News - Gold prices edged lower on Monday as investors favoured the dollar following the U.S. attack on key Iranian nuclear sites over the weekend, with markets closely watching for Iran's response.

Spot gold was down 0.2% at $3,362.29 an ounce, as of 0341 GMT. U.S. gold futures fell 0.2% to $3,378.

"The US strikes on Iranian nuclear facilities resulted in the dollar receiving safe haven buying flows in the currency market," KCM Trade Chief Market Analyst Tim Waterer said.

"This USD uptick had pegged gold back and caused an uncharacteristically subdued performance from the precious metal despite risks stemming from the conflict."

The dollar rose 0.2% against its rivals, making gold more expensive for other currency holders.

U.S. President Donald Trump on Sunday raised the question of a regime change in Iran following U.S. strikes against key military sites over the weekend, as senior officials in his administration warned Tehran against retaliation.

Elsewhere, spot silver rose 0.2% at $36.07 per ounce, platinum edged 0.1% higher to $1,269.17, while palladium gained 0.2% to $1,046.62. Reuters