Gold slid on Monday, pressured by technical selling, following a fierce 3 percent rally in the previous session as raging Israel-Hamas war sent investors scuttling to the safe-haven bullion and pushed prices above the key $1,900 ceiling.
Spot gold fell 0.7 percent to $1,919.21 per ounce and US gold futures dropped 0.5 percent to $1,932.70.
Gold, which investors view as a safe place to park money during times of economic and geopolitical stress, hit its highest since Sept. 20 at $1,934.82 earlier in the session, after surging 3.4 percent on Friday in its biggest one-day rise in seven months.
“We saw an extreme move to the upside on Friday, and such moves usually beckon some mean reversion,” City Index Senior Analyst Matt Simpson said.
“Given the surge in prices, gold will likely remain in focus for traders seeking to buy dips, which makes $1,920 and $1,900 of area of interest. But if tensions in the Middle East continue to escalate, shorting gold may not end too well for bears over the near-term. – Reuters
