Gold prices fell more than 1 per cent on Monday as the dollar hovered near a more than one-week high, but the metal held above $1,700 an ounce, buoyed by fears of a second wave of coronavirus infections.
Spot gold fell 0.8 per cent to $1,716.78 per ounce by 10:57 a.m. ET (1457 GMT). US gold futures fell 0.76 per cent to $1,723.90 per ounce.
“In a risk-off mood, the dollar becomes a favorable asset and that’s pressuring gold,” said David Meger, director of metals trading at High Ridge Futures.
“But since the US Federal Reserve meeting, we have been crawling down because the gold market did not get more monetary stimulus from the Fed; no additional rate cuts or asset purchases.”