Gold prices were headed sharply lower on Monday, skidding below a psychologically important level at $1,500 in the final trading day of the month and quarter, pressured by a firming dollar and some buoyancy in U.S. stocks and yields, drawing demand away from bullion.

Gold for December delivery on Comex declined $16.80, or 1.1%, to $1,489.60 an ounce, after notching on Friday losing 0.6% last week. For the month, gold is on pace to decline 2.6% but has gained 5.3% thus far over the past three months.

December silver lost 38 cents, or 2.1%, to trade at $17.285 an ounce, following a weekly decline of 1.1% on Friday. Silver futures are on track to lose 5.7% in September, but have gained 12.8% so far in the quarter.

Source : Market Watch