On Monday, gold prices fell to the lowest level in a month and a half and are preparing to fix the third consecutive decline session. The appreciation of the dollar led to a decrease in demand for the yellow metal.
At the moment of writing, gold futures fell $ 7.63 or approximately 0.62% to $ 1,234.67 per troy ounce. This is the lowest value since May 16.
On Monday, the dollar recovered from a nine-month low against the basket of other major currencies after a decline caused by a possible tightening of monetary policy by several central banks of the world.
The US dollar index, which shows the purchasing power of the dollar to the trade-weighted basket of six major currencies, rose 0.43% to 95.8. During the trading session on Friday, the dollar index fell to a low in nine months at 95.22.
This probability (of tightening) increased after the relevant statements of the leaders of the European Central Bank, the Bank of England and the Bank of Canada.
The statements in favor of tightening monetary policy from the heads of central banks are in contrast with doubts about the Fed's ability to once again raise interest rates until the end of this year amid a series of weak economic reports in the US and growing concerns about the ability of the Trump administration to implement its economic course.
The rise in stock markets also reduced demand for precious metals, when shares of oil and gas and financial companies rose after the lows recorded last week.
Asian stocks held near the highs in two years on Monday, while signs of stability in the Chinese economy and the recovery of Europe's economy supported the value of shares.
Here is the price performance of other precious metals: the price of silver decreased by 0.72% to $ 16.44 per troy ounce. Platinum futures declined 0.49% to $ 920.5 an ounce, while palladium rose 0.49% to $ 840.75 an ounce.