09:17 AM EDT, 10/28/2024 (MT Newswires) -- Gold prices eased early on Monday as Israel's limited retaliatory attack on Iran on the weekend lowered some geopolitical worries, through safe-haven buying ahead of the Nov.5 U.S. election and a weaker dollar offered support.

Gold for December delivery was last seen down US$8.90 to US$2,745.70 per ounce.

The drop comes after Israel limited its response to Iran's Oct.1 attack to some military and industrial targets, a measure seen as de-escalating tensions between the two countries. Attention is now on the upcoming U.S. election and worries over the fiscal policies of the two presidential contenders.

"Gold's limited (negative) reaction to the Israeli attack, USD and yield strength, as well as data pointing to a 20% slump in China's Q3 demand, highlight a market that for now remains focused on the US election and the potential risks the result may lead to excessive government spending, pushing the debt-to-GDP ratio higher, while fueling inflation fears," Saxo Bank wrote.

The dollar eased early, with the ICE dollar index last seen down 0.05 points to 104.21.

Treasury yields were mixed, with the U.S. two-year note last seen paying 4.112%, down 1.0 basis points, while the yield on the 10-year note was down 0.07 points to 4.239%.