Gold prices on Monday, September 25 slumped and hovered around one-month lows hit last week, as the U.S. dollar firmed and concerns over the Korean peninsula eased.
Spot gold was down 0.4 percent at $1,291.60 per ounce as of 0646 GMT, not far from last week’s near one-month low of $1,287.61. Prices of the yellow metal dropped about 1.7 percent last week in their second consecutive weekly decline.
U.S. gold futures for December delivery slipped 0.2 percent to $1,295.00 per ounce.
“(Angela) Merkel’s win in the German federal elections and aquiet news weekend on the North Korean front, saw the U.S. dollar opening stronger and gold’s weekend safe-haven premium eroded from Friday,” said Jeffrey Halley, a senior market analyst with OANDA.
The dollar index was up 0.2 percent at 92.32 against a basket of currencies. The euro slipped after Merkel won a fourth term in a weekend election, but faced leading a much less stable coalition in a fractured parliament as support for the far-right party surged.
On Sunday, the United States said it has added North Korea to its list of countries that are banned from entering the country.
Meanwhile, physical gold demand remained soft across Asia this week despite a downwards price correction as consumers awaited further dips in rates, while a government move to bring transparency to bullion trading kept buyers on the sidelines in
India.
In other precious metals, silver slipped 0.5 percent to $16.87 per ounce. Prices fell over 3.5 percent last week in the biggest weekly decline since early July.
Platinum fell 0.2 percent to $928.50 per ounce, but hovered around an eight-week low hit on Thursday.
It shed 3.5 percent last week in its second consecutive weekly fall.
Palladium gained 0.9 percent to $924.50 per ounce.
