SINGAPORE: Gold fell below the key psychological level of $1,900 in Asian trade on Monday to its lowest in more than a week, pressured by a firmer dollar and stalled progress in talks for a new US coronavirus aid package. Spot gold fell 0.2% to $1,897.35 per ounce by 0711 GMT, after hitting $1,890.19, its lowest since Oct. 15.
US gold futures were down 0.4% at $1,898.20.
"There seems to be a lack of impetus to find extra buyers (for gold)... A lot of it is because we're trading in the looming shadow of the US elections and stimulus speculation," said IG Markets analyst Kyle Rodda.
Widely viewed as a hedge against inflation and currency debasement, bullion has gained 25% this year as central banks and governments unveiled unprecedented stimulus to cushion the economic fallout from the pandemic. A break below support at $1,887 per ounce could push gold lower to $1,872, according to Reuters technical analyst Wang Tao.
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