Precious gold returns back under pressure with the start of the new week, thwarted by fears of a broad slowdown in the world economy and Europe's unending debt crisis. Each of these pressures have made the U.S. dollar stronger over the last few weeks.
As of 03:30 a.m. EST, Spot gold was down by $9.88, or 0.62 percent, at $1,573.75 an ounce. The yellow metal started the day at $1,580.21, recording an intraday high of $1,582.74 and low of 1,571.98.
This morning it's all about Spain, it seems, as the troubled country fuels its woes after two indebted regions seeking bailouts from the European Central Bank knocked out the single currency to a two-year low against the dollar and dampening risk appetite.
The U.S. dollar rose against the euro and the pound this morning, sending the USDIX to start Monday higher to record a high of 83.77 and low of 83.76.
Metals market sold off in general with the start of the European session. Spot Silver was lower 0.32 percent at $26.96 an ounce. Spot Platinum was down 1.50 percent at $1,393.25 an ounce, while Spot Palladium fell 1.10 percent to $569.42 an ounce.
The yellow precious metal is expected to remain chained in an increasingly narrow range amid lack of commitment to further monetary easing from the U.S. Federal Reserve, as traders await new hints of whether the Fed will act in its next policy meeting at the end of this month.
