Gold settled on Monday at a four-month low, touching on the previous session with support from a weaker dollar and expectations that the US would impose further restrictions on Iranian oil exports.
Spot gold did not change much at $1.274.58 an ounce. Thursday it reached $1270.63 an ounce, its lowest level since Dec. 27. US gold futures rose by 0.1%, to $1,276.60 an ounce.
The United States has taken an “aggressive move by not extending the sanctions,” declared senior analysts. According to them, there are some geopolitical risks and little demand for safe haven gold. They added that the weaker dollar and softer stocks support the strength of precious metals.
Oil exceeded $74 a barrel on Monday, the highest since November. The United States is set to announce further restrictions on Iranian oil exports.
Wall Street stocks were trading lower, weighed down by technology shares, which helped bullion rally safe haven bids.
Experts believe there is some risk aversion in the market to start the trading week, as the United States wants to escalate economic sanctions against Iran.
The dollar fell 0.2%, making bullion cheaper for investors who were holding other currencies.
Technically, traders said that gold breaking below key support levels, including moving averages for 100 and 50 days last week, suggests further price declines.
Technically, gold bears have a near-term technical advantage. Meanwhile, speculators placed a short position on COMEX gold in the week ending April 16, the US Commodity Futures Trading Commission said on Friday.
SPDR Gold Trust, the world’s largest gold-backed investment fund, fell to 751.68 tonnes on Thursday, the lowest since Oct. 26.
Among other metals, silver rose 0.5% to $15 an ounce. Platinum fell 0.4% to $896.90 an ounce and palladium fell 2.3% to $1389.35 an ounce, after rising earlier to a two-week high of $1429.91 an ounce.
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