Gold prices fell sharply on Monday, under pressure from lower demand for safe havens after reports of ceasefire talks between Israel and Hezbollah that indicated a possible de-escalation in the Middle East.
However, the yellow metal was sitting on strong gains from last week, as rising tensions between Russia and Ukraine pushed safe-haven demand higher.
Spot gold fell 1.6% to $2,670.82 an ounce, while gold futures expiring in December fell 1.5% to $2,697.10 an ounce.
Broader metal prices were buoyed by a sharp decline in the dollar, which fell in tandem with Treasury yields after US President Donald Trump nominated prominent investor Scott Besent, seen as a moderate choice, as Treasury secretary.
Gold was sitting on strong gains over the past week after tensions escalated between Russia and Ukraine. These tensions are likely to continue this week, with few ways to calm the long-running conflict.
