Gold futures on the COMEX Division of the New York Mercantile Exchange further declined on Monday, as the strengthened U.S. dollar continued to reduce the appeal of gold for investors.
The most active gold contract for June delivery slipped three U. S. dollars, or 0.2 percent, to 1,490.6 dollars per ounce.
Market analysts said that the recent rally in U.S. dollar has significantly dampened the appeal of gold for those investors holding other currencies. The U.S. dollar index even hit the highest since early April in the previous week.
Besides, investors appear to be very tentative in retaining long positions and are quick to liquidate when the upward momentum stalls, said Mike Daley, a senior gold analyst with PFTBEST.
"I believe many traders are taking a wait and see approach as this week, which is loaded with economic data and I expect the volatile and choppy trading to continue as traders and investors have become 'gun shy' to these vast trading ranges and uncertain of direction," he added.
However, the gold's weak sentiment was somewhat supported by eased concerns over EU debt problem, as European finance ministers met to tackle the region's sovereign-debt crisis.
Silver for July delivery also shed 88.1 cents, or 2.5 percent, to 34.132 dollars per ounce. Platinum for July delivery dropped 9. 3 dollars, or 0.5 percent, to 1,760 dollars per ounce.
