SINGAPORE: Gold fell more than 1 percent on Monday, holding near its weakest level in two weeks, as the dollar firmed on signs of an improving US job market and as holdings in exchange-traded funds slipped again.
Bullion's safe-haven appeal has been dimmed by speculation the Federal Reserve could scale back its aggressive monetary stimulus after recent US labour market data pointed to a steady recovery trend in the world's largest economy.
Gold had dropped $11.94 an ounce to $1435.76 by 0610 GMT, nearing Friday's low of $1,420.61, its weakest since April 24. Gold has fallen more than 14 percent this year as investors switch funds into a rallying equity market and the greenback.
"So far, nothing in the market bodes well for an upside in gold. Gold needs to break above $1,487 to show an upward correction," said Joyce Liu, an investment analyst at Phillip Futures in Singapore.
"CFTC data shows an increase in bearish bets in gold, so that sends another bearish signal to retail speculators, who have no idea what the funds' view on gold is. There's probably some technical selling because we've broken below $1,440."
Hedge funds and money managers trimmed their bullish bets in gold futures and options in the week to May 7 on weaker bullion prices and outflows in gold exchange-traded funds, a report by the Commodity Futures Trading Commission (CFTC) showed on Friday.
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