Gold prices drop as the dollar reprieves from risk aversion

Gold slides down

The price of gold was pulled down by the strength of the dollar on Monday as it normally recovers from the decline of the bullion.

The U.S. currency was spared from risk aversion this day following the decision of North Korean leader Kim Jong-Un on holding a party last weekend instead of firing another ballistic missile. This movement has undermined the demand of safe-haven assets like treasuries, yen and the yellow metal.

On the same day, the hermit state warned the United States that it would pay the price for spearheading the U.N. Security Council resolution against its new missile test subsequently when the press from Washington voted on a draft resolution on foisting sanctions on Pyongyang.

Looking on the price of the bullion, U.S. gold futures edged down more than 0.7 percent to trade at $1,341.70 per ounce for its December delivery. Spot gold as well was 0.7 percent low and settles at $1,337.00 per ounce. On the previous session, spot reached an almost 1-year high at $1,357.54.

Outside the market, U.S. President Donald Trump extended the debt limit for three months as it signed a bill last Friday. He also provided as much as $15 billion for hurricane victims which brought an unexpected agreement with Democrats this week for conclusion.

The biggest gold-backed exchange-traded fund in the world, SPDR Gold Trust said last Friday that their holdings dropped more than 0.28 percent to 834.50 tonnes from the previous day’s 836.87 tonnes. Meanwhile analysts from COMEX gold heightened their net long positions for eight straight weeks.

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