By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) – Gold prices kicked off the week on a softer note Monday, as the dollar gained following news of the arrest of the head of the International Monetary Fund, Dominique Strauss-Kahn.
Gold for June GCM11 +0.57% delivery dropped $3.20 to $1,490.30 an ounce in electronic trading on Monday. Silver prices also weakened, with silver for July delivery SIN11 -0.09% dropping 36 cents to $34.65 an ounce.
The dollar index DXY -0.50% traded at 75.88 on Monday, compared to 75.761 in late North American trading Friday when it reached a six-week high against the euro.
The euro has suffered recently amid resurgent concerns about European sovereign debt woes.
The IMF’s Dominique Strauss-Kahn had been one of the key players working to address Europe’s debt crisis.
However, the IMF managing director was arrested over the weekend and charged with the attempted rape, sexual assault and unlawful imprisonment of a New York hotel maid. See story on IMF chief's arrest.
Strauss-Kahn had been scheduled to attend meetings to discuss the euro-zone debt crisis on Monday. Nemat Shafik will attend Monday’s Eurogroup meeting in Brussels in place of Strauss-Kahn, the IMF said. See story on IMF appointing acting MD.
Monday’s drop for gold extends losses made Friday, when it reached a level not seen since May 6. Traders were also reportedly looking ahead to a speech Monday by Federal Reserve Chairman Ben Bernanke in which he is expected to provide more clarity on U.S. interest rate policy.
