Investing.com - Gold prices fell to one-and-a-half month lows on Monday and were on track to post a third straight session of losses as a recovery in the dollar hit investor demand for the precious metal.
Comex gold futures were at $1,234.67 a troy ounce by 06.58 AM ET (10.58 GMT), down $7.63, or around 0.62%. It was the lowest level since May 16.
The dollar pulled away from nine-month lows against a basket of the other major currencies on Monday after slumping amid expectations that several global central banks are getting ready to join the Federal Reserve in tightening monetary policy.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.43% to 95.8. On Friday, the index fell to a nine-month trough of 95.22.
In comments last week the heads of the European Central Bank, the Bank of England and the Bank of Canada adopted a more hawkish view on monetary policy.
Hawkish signals from foreign central banks contrasted with doubts over whether the Federal Reserve will be able to hike rates again this year given a recent batch of weak U.S. economic data and growing skepticism that the Trump administration will be able to deliver on its pro-growth agenda.
A rally in global equity markets also reduced demand for bullion as oil stocks and banks lead a broad-based bounce from lows hit last week.
Among other precious metals, silver was down 0.72% to $16.44 per ounce
Palladium rose 0.49% to $840.75 per ounce while platinum fell 0.64% to $920.5 per ounce.
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