Gold futures deepened their retreat below the closely watched $1,300 line with a fresh leg lower on Monday, driven there by gains in risk-on markets as trade-pact optimism grew.
Futures dropped below the $1,300 mark on Friday to settle at their lowest in a month and half, down over 2% for the week — the sharpest weekly fall since August. Broad risk-on sentiment, which boosted U.S. and global stocks, as well as strength in the U.S. dollar, worked to dull demand for the haven precious metal then and again on Monday.
In recent trading, April gold fell $10.60, or 0.8%, at $1,288.70 an ounce. It settled Friday at $1,299.20 an ounce, the lowest most-active contract settlement since Jan. 25, according to FactSet data. For last week, bullion was down about 2.5%, which was the steepest weekly percentage decline for a most-active contract since the week ended Aug. 17.
Gold-backed exchange-traded fund SPDR Gold Shares was down 0.3% after dropping 2.3% for last week.
Source : Marketwatch