Gold extended losses on Monday trading session, falling for the eighth straight session to its weakest in a month on fears that the U.S. Federal Reserve may wind back its monthly bond purchases from the third quarter.
Gold dropped sharply on Monday after some Federal Reserve officials said the central bank should end its stimulus for the U.S. economy, slashing gold's appeal as a hedge against inflation.
As of (09:20 GMT+3) gold for immediate delivery slumped 1.60 percent or 21.82 points to trade at $1,344.46 after opening at $1,362.79, having earlier hit a low of $1,338.49, and a high of $1,365.36.
Reserve Bank of San Francisco President John Williams said on Thursday the Fed's may begin slowing the pace of its $85 billion in monthly bond-buying amid signs the economy is gradually gaining strength.
Data released on Friday showed U.S. consumer confidence surged above analysts' estimates, sending the U.S. dollar to a three-year high. The University of Michigan said its consumer sentiment index surged to 83.7 in its preliminary reading for May, the highest since July 2007, highly above estimates at 77.9, from 76.4 in April.
The dollar index is currently trading around 84.26 after opening at 84.26; USDIX hit a high of 84.40 and a low of 84.19.
Silver tracked gold lower as it slumped to the lowest level since September 2010 on Monday, sending its ratio to gold to the highest in 33 months on concern that economic growth is slowing in China.
As of (09:26 GMT+3) silver slumped 4.67 percent or 1.05 points to trade at 21.44 after opening at 22.26, having earlier hit a high of 22.34, and a low of 20.06
Meanwhile, the drop in gold-backed holdings indicates that investors are shifting to equities at the expense of the precious-metal. Gold holdings in the SPDR Gold Trust fell 0.55 percent to 1041.42 tons on Thursday, the lowest in four years.
Filings last week showed that George Soros, founder and chairman of Soros Fund Management, cut his holdings of bullion-backed exchange-traded products.
Among other commodities, platinum lost 1.10% to 1,447.45 and palladium inched 0.80% down to 733.90 .
Opinions expressed at ICN.com are those of the individual authors and do not necessarily represent the opinion of ICN.com or its management, shareholders, affiliates and subsidiaries. ICN.com has not verified the accuracy of any claim or statement made by any independent writer and is reserved as their own and ICN.com is not accountable for their input. Any opinions, news, research, analysis, prices or other information contained on this website, by ICN.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. ICN.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The data contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market prices, meaning prices are indicative and not appropriate for trading purposes. ICN.com does not bear any responsibility for any trading losses you might incur as a result of using this data.