Gold futures fell sharply on Monday, settling at their lowest in two months as strength in the dollar, U.S. stocks and bond yields dulled investor demand for the precious metal.
"Naturally, a strong U.S. dollar is a headwind for gold priced in U.S. dollars," said Michael Armbruster, managing partner at Altavest. "However, technical considerations may be more influential on today's action in the gold market," he said.
"Gold has formed a bearish head-and-shoulders pattern, and today's drop below the formation's 'neckline' has likely spurred additional selling."
December gold fell $33.50, or 2.2%, to settle at $1,472.90 an ounce. That was the lowest finish since Aug. 2, according to FactSet data. Prices for the contract lost 3.7% for the month, but gained 3.4% for the quarter.
Source : MarketWatch