Investing.com – Gold prices fell for a third day in a row, pressured by a sharp rise in the dollar as investors continued to flee safe-haven assets amid a decline in geopolitical uncertainty.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell by $4.14, or 0.31%, to $1,328.56 a troy ounce.
Gold prices remained on track to suffer their longest losing streak in more than month as appetite for safe-haven investments continued to fade, underpinning a move higher in both the dollar and treasury yields.
Dollar-denominated assets such as gold are sensitive to moves in the dollar – A stronger dollar makes gold more expensive for holders of foreign currency and thus, reduces demand.
Some analysts, however, viewed gold’s recent slump as transitory and highlighted that lower prices would attract buyers, supporting a recovery in the precious metal.
"Geopolitical trouble hasn't disappeared and the U.S. political landscape is still fraught with difficulties," Saxo Bank's head of commodity research Ole Hansen said. "When gold drops almost $40, a lot of investors see that as a good level at which to buy back in."
Hansen’s comments come amid data which showed net bullish bets on gold rose to 245,300 last week, the highest in nearly twelve-months, according to a report from the Commodity Futures Trading Commission (CFTC) on Friday.
In other precious metal trade, silver futures fell 0.30% to $17.84 a troy ounce while platinum futures lost 0.45% to $982.05.
Copper traded at $2.98, down 1.75%, while natural gas rose by 2.27% to $3.07.