Gold fell over 2 percent on Monday as the dollar rose, nearly wiping out its previous session’s rally, but signs of renewed buying interest in the U.S. futures market could underpin prices, traders said.
A combination of oil futures tumble and higher U.S. stock markets also weighed down on the yellow metal’s appeal as a safe haven.
On Friday, it rallied almost 3 percent after U.S. payrolls data marginally missed expectations, sending the dollar lower.
While most analysts had cited short covering for Friday’s gains, exchange data suggested speculators might have increased new bullish bets in the gold futures market.
Spot gold was down 2.2 percent at $1,152.77 an ounce by 2:35 p.m. U.S. COMEX gold futures for December delivery settled down $10 at $1,159.80, with trading volume about 25 percent above its 30-day average, preliminary Reuters data shows.
Source : Reuters