Gold prices fell in European trade on Monday, marking the third consecutive session of losses despite the presence of positive factors that typically support prices.
Haven demand for gold has weakened, even as both the dollar and US yields continue to suffer substantial losses due to the anticipated 0.5% interest rate cut by the Federal Reserve in September.
Prices
Gold prices dropped 1.2% today, reaching $2414 an ounce, with a session high of $2458.
On Friday, gold declined by 0.1%, marking the second consecutive loss due to profit-taking away from a two-week high of $2477.
Haven Demand
Investment demand for gold remains weak, even as most global stocks decline due to risk aversion and mounting geopolitical tensions in the Middle East.
The US government plans to send additional fighter jets and warships to the Middle East to bolster defenses against Iran and its allies.
The Dollar
The dollar index fell by 0.8% on Monday, hitting a five-month low of 102.41 against a basket of major currencies.
US Yields
US 10-year Treasury yields fell by 3%, marking their eighth consecutive decline and reaching a 14-month low of 3.680%, which typically boosts non-yielding assets like gold.
Weak US labor data has triggered concerns about a potential US recession and increased expectations of a deeper interest rate cut by the Federal Reserve in September.
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