Gold fell more than 2 percent to one-week lows on Monday for its weakest session so far this year after a late sell-off triggered by oil’s continued rout and a stronger dollar ahead of the key Federal Reserve meeting later in the week.
Bullion prices had weakened in early trade as the dollar firmed before the Fed meeting on Tuesday and Wednesday, which could provide clues on the timing of a possible interest rate rise by the U.S. central bank.
In afternoon trade, selling accelerated as the market took its cue from collapsing U.S. crude oil before technical selling kicked in as bullion took out near- and medium-term moving averages on its way from $1,210 to the low for the day of $1,191.
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