Gold for December delivery fell $8.50, or 1.1%, to $738.70 an ounce on the New York Mercantile Exchange.
A stronger U.S. currency makes dollar-denominated commodities, such as gold, more expensive. The dollar found support Friday after an upbeat September jobs report eased concerns about a U.S. recesssion.
"A few market ships hit some rough waters this Columbus Day, and gold's was one of them," said Jon Nadler, analyst a Kitco, in a note. "What started as a mild decline in values overnight in Asia, soon turned to more serious selling as local stocks took to flight after the U.S. employment data hit with full bullish impact."
And with no data on Monday, the dollar index, which measures the greenback against a basket of key currencies, rose 0.6%.
The strength of the U.S. currency Monday came amid a meeting of European finance ministers, who are trying to apply downward pressure on the euro. The euro has risen to record highs due to a sliding dollar.
Gold was already on a downward trend last week.
"As expected after gold's six weeks of rising prices, gold took a well earned rest last week and was down by a marginal $1.50 for the week," said Mark O'Byrne, director of Gold and Silver Investments, in a note. "Continuing consolidation may be expected," he said.
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A stronger U.S. currency makes dollar-denominated commodities, such as gold, more expensive. The dollar found support Friday after an upbeat September jobs report eased concerns about a U.S. recesssion.
"A few market ships hit some rough waters this Columbus Day, and gold's was one of them," said Jon Nadler, analyst a Kitco, in a note. "What started as a mild decline in values overnight in Asia, soon turned to more serious selling as local stocks took to flight after the U.S. employment data hit with full bullish impact."
And with no data on Monday, the dollar index, which measures the greenback against a basket of key currencies, rose 0.6%.
The strength of the U.S. currency Monday came amid a meeting of European finance ministers, who are trying to apply downward pressure on the euro. The euro has risen to record highs due to a sliding dollar.
Gold was already on a downward trend last week.
"As expected after gold's six weeks of rising prices, gold took a well earned rest last week and was down by a marginal $1.50 for the week," said Mark O'Byrne, director of Gold and Silver Investments, in a note. "Continuing consolidation may be expected," he said.
Discuss Add this link to... Bury
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