The defeats are a jolt to a full-strength Pakistan side in their preparations for the Twenty20 World Cup
Spot gold was bid at $1,364.50 an ounce at 1056 GMT, against $1,366.35 late in New York on Friday. US gold futures for December delivery fell $1.30 an ounce to $1,364.20.
The metal staged its biggest one-day fall since July 1 on Friday, retreating from last week’s record $1,424.10, on concern the market had become overbought and as talk of a potential interest rate rise in China knocked commodities sharply lower.
“The rise above $1,400 was probably premature and gold was overbought. Right now, I wouldn’t be surprised to see further weakness on a lack of a new speculative buying,” said Commerzbank analyst Eugen Weinberg.
He said newly resurfacing worries over the stability of certain euro zone economies, most notably Ireland, was “definitely helping” the metal. “That is the reason why we are not much lower.”
A spike in the borrowing costs of peripheral euro zone members over the past weeks has raised concerns about their ability to cut debt.
German government bond prices fell on Monday, however, as some safe-haven flows were unwound on talk that Ireland may ask the European Union for aid to manage its debt crisis. Ireland on Sunday did not rule out the possibility that it might have to turn to Europe to deal with its debt crisis but said that no application had been made for assistance yet.
Concerns over Ireland and other euro zone economies pressured the euro back towards last week’s six-week low, while the dollar index hit a six-week high, boosted by higher US Treasury yields.
A stronger dollar typically weighs on gold, because it dents interest in the metal as an alternative asset and makes it more expensive for holders of other currencies.
When both gold and the dollar benefit from rising risk aversion, as was seen at the height of the sovereign debt crisis in the second quarter of this year, they can move together. This may happen again if current euro zone debt fears worsen, analysts said.
“Once the dust settles, there will be plenty of willing buyers happy to move in on new lows,” said VTB Capital analyst Andrey Kryuchenkov in a note.
Caution abounded throughout the wider financial markets, with stocks in Asia and Europe falling on fears that Ireland may be forced to seek a financial rescue package.
Oil prices held near $85 a barrel after falling more than 3 percent on Friday, and base metals prices were soft as concerns over the prospect for a further Chinese interest rate hike lingered.
Silver was bid at $25.97 an ounce against $25.99, having underperformed gold on Friday to fall more than 6 percent, its biggest one-day decline since early February.
Among other precious metals, platinum was at $1,672.24 an ounce against $1,679, while palladium was at $668.47 against $675.50.
Although it is underperforming other precious metals on Monday, palladium remains on track to post the biggest gains of the complex this year, on expectations that demand from automakers and other industrial users will rise.
The defeats are a jolt to a full-strength Pakistan side in their preparations for the Twenty20 World Cup
With his famous stepfather Tommy Fleetwood on his bag, Dubai’s Oscar Craig shoots a promising first round 69
Karn Sharma and Swapnil Singh bag four key wickets to secure a 35-run victory in Hyderabad
The patient had endured years of severe pain and debilitating health complications due to the tumour
The concert is set to take place on April 27
Move aims to amplify Zambia’s renewable energy capacity
More vertiports will be set up in strategic locations across Abu Dhabi, including major business hubs and tourism destinations
Kerala will decide the fate of 194 candidates as polling on all 20 parliamentary constituencies will be held in the second phase