Investing.com - Gold futures were down sharply in Europe trade on Monday, as the metal’s safe-haven appeal was dented amid a recovery in oil prices and global equity markets.
Gold for April delivery on the Comex division of the New York Mercantile Exchange tumbled by as much as $24.90, or 2.02%, to hit an intraday low of $1,205.90, before recovering slightly to $1,209.10 by 09:10GMT, or 4:10AM ET, down $21.70, or 1.76%.
European stocks opened sharply higher on Monday, tracking their Asian counterparts, as a rebound in oil prices boosted market sentiment. Elsewhere, U.S. stock futures were up between 0.9% and 1.1%, suggesting a strong open on Wall Street later in the day.
Gold held above the $1,200-level amid ongoing speculation the Federal Reserve could delay the pace of its tightening for the remainder of 2016.
Prices of the yellow metal soared to a one-year high of $1,263.90 on February 11. Gold is up nearly 16% so far this year amid indications global economic and financial headwinds could make it tough for the Fed to raise interest rates as much as it would like this year.
Market participants have all but priced out any rate hikes this year, while the Fed is anticipating four more. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
In the week ahead, market players will be turning their attention to Friday’s revised data on U.S. fourth quarter gross domestic product for a fresh reading on the strength of the economy.
Reports on U.S. durable goods orders and consumer confidence will also be in focus, as investors attempt to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016.
Also on the Comex, silver futures for March delivery dropped 30.3 cents, or 1.97%, to trade at $15.07 a troy ounce during morning hours in London.
Elsewhere in metals trading, copper futures jumped to a more than two-week high on Monday, amid mounting expectations for further stimulus measures from central banks in Europe and Asia.