Gold futures on Monday fell hard, as analysts blamed the drop on investors starting out the week with a hankering for stocks and other riskier assets.
Gold futures for April delivery slumped $26.80, or 2.2%, to $1,204 an ounce, while March silver dropped 35 cents, or 2.3%, to $15.03 an ounce.
Gold has fallen “as the week begins in a market environment characterized by higher risk appetite,” said Commerzbank analysts in a note Monday.
U.S. stock futures have been pointing to a higher open, and European and Asian equities have advanced, with oil also gaining.
Gold futures earlier this month logged their highest settlement in a year. But the Commerzbank analysts, citing CFTC data, said the surge to a 12-month high was “speculatively driven.”
At the same time, the analysts noted that gold ETFs on Friday saw their biggest daily inflow since October 2011. Gold futures ended higher Friday, but registered their first weekly loss in about a month.
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