SINGAPORE: Gold reversed course to trade lower on Monday as the dollar recouped some losses, although the US Federal Reserve's new policy framework that suggested interest rates would remain near zero for some time limited losses for the safe-haven bullion.
Spot gold was down 0.2% to $1,961.54 per ounce by 0724 GMT, after hitting its highest since Aug. 19 at $1,976.14 in early Asian trade. Gold was down 0.5% so far this month.
US gold futures fell 0.3% to $1,968.80.
Weighing on gold, the dollar index steadied against a basket of major currencies but was on track for a fourth consecutive monthly decline.
"Choppiness in the US dollar will spill over into how gold trades," said IG Markets analyst Kyle Rodda.
Gold has gained nearly 30% so far this year, notching an all-time high of $2,072.50 earlier this month, as investors seek to buy the metal as a hedge against possible inflation and currency debasement due to unprecedented money printing by central banks.
"Gold is expected to retest the old highs again. I don't think anything has changed in terms of the underlined fundamentals," said Edward Meir, an analyst at ED&F Man Capital Markets.
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