Gold prices dropped on Monday as the U.S. dollar strengthened against a basket of currencies. Increasing demand for riskier assets, fueled by economic growth and higher vaccination rates, dented gold’s safe-haven status.
Spot gold dropped 0.2% at $1,727.91 per ounce at 0129 GMT. U.S. gold futures fell 0.4% to $1,726.00 per ounce.
The dollar had a strong start to the week as a strong U.S. economy and vaccine rollout at a much faster pace than in Europe attracted investors to the greenback.
A stronger dollar makes gold, which is denominated in dollars, expensive for holders of other currencies.
The U.S. Commodity Futures Trading Commission (CFTC) said on Friday that hedge funds and money managers increased their long COMEX gold positions and cut silver contracts in the week ended March 23.
The SPDR Gold Trust, the world’s largest Gold exchange-traded fund, said its Gold holdings fell 0.6 percent to 1,036.62 tons on Friday from 1,043.03 tons on Thursday.
Silver fell 0.8% to $24.84. Palladium rose 0.1% to $2,677.10. Platinum fell 0.6% to $1,177.9.