Gold Futures Settle Lower As Dollar Climbs On Safe Haven Demand

Gold prices fell on Monday as the dollar climbed higher, with recent comments from some top Fed officials suggesting tighter policy moves by the central bank.

Worries about a surge in Covid-19 cases in China and the impact of stringent restrictions on movements in several cities in the country also triggered concerns about demand for commodities from the world's second largest economy.

According to reports, three people died in Beijing over the weekend and the country logged a record jump in daily cases, despite a stringent zero-COVID policy.

Authorities locked down part of the manufacturing hub of Guangzhou for five days and urged residents of the sprawling Chaoyang district to remain at home today.

The dollar index climbed to 107.99 and was at 107.82 a little while ago, up 0.84% from the previous close.

Gold futures for December settled at $1,739.60 an ounce, losing $14.80 or about 0.8%.

Silver futures for December ended down $0.125 at $20.872 an ounce, while Copper futures for December settled at $3.5715 per pound, down $0.0605 from the previous close.

Gold prices were also hit due to a potential nuclear crisis in the Russia-Ukraine conflict amid heavy shelling of Ukraine's Zaporizhzhia nuclear power plant.

The International Atomic Energy Agency has called for "urgent measures to help prevent a nuclear accident" in the Russian-occupied facility, of which it said parts were damaged but showed no signs of a radiation leak.

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