Gold fell on Monday as a stronger performance in US equities and a dollar rise prompted investors to take profits after its rally in the previous session. Bullion market sentiment was also weakened after billionaire financier George Soros said gold has been destroyed as a safe-haven asset, even though central-bank buying should support prices.
“We are going to hold here until that next catalyst comes. On the upside, the funds appear done liquidating, and gold should move its way back up once the liquidation is done,” said Phillip Streible, senior commodities broker at futures brokerage RJ O’Brien.
Spot gold dropped 0.6 percent to $1,572.75 an ounce by 2:56 pm EDT (1856 GMT).
On Friday, gold surged nearly 2 percent for its biggest one-day gain in around five months as disappointing US jobs data fuelled expectations the Federal Reserve will continue its bullion-friendly bond purchases.
US gold futures for June delivery settled down $3.40 at $1,572.50 an ounce on Monday. Trading volume was about 40 percent below its 30-day average, preliminary Reuters data showed. Year to date, gold is down 6 percent after it had posted an annual gain in each of the past 12 years.
Among other precious metals, silver fell 0.3 percent to $27.21. Platinum was up 0.2 percent to $1,533.99, and palladium climbed 0.2 percent to $727.97.
