Gold prices remained lower into late trade on Monday, as Wall Street stocks added to their gains on increased investor risk tolerance, but bullion cut its decline to about 2.20 percent as some buyers bought dips. Sought as a haven asset in times of uncertainty, the yellow metal had some players adding to their holdings as a safety play, unconvinced that a day's positive news would stick.
"Although gains in equities initially caused flight-to-quality buyers of gold to disappear, there's still a lot of pent up demand on price breaks. Gold seems to be an asset people want to own for the foreseeable future," said Adam Klopfenstein, Senior Market Strategist at MF Global in Chicago.
Spot gold cut earlier declines to a 2.20 percent loss at $1,787.35 an ounce by 3 pm EDT (1900 GMT). Thin markets helped the precious metal find its balance after recent volatile swings. Last week, prices were highly volatile sliding more than $200 from a record $1,911.46 an ounce, dropping towards $1,700. In New York, COMEX gold for December delivery finished $5.70 per ounce lower at $1,791.60, a 0.3 percent decline.
Early selling, however, lead to a low at $1,781.20. Holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, recorded an outflow of nearly 60 tonnes last week, its largest weekly outflow since the fund was launched in November 2004.ounce, tracking gold's weakness. Spot platinum fell to $1,819.74 an ounce from $1,827.65 on Friday, while spot palladium was lower at $748.93 an ounce than $752 previously.
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