Demand for the precious metal as a haven asset slowed down amid reduced preoccupations that economic growth has struck a rough patch. July saw retail sales in the U.S. increase the most since April and unemployment benefit applicants also dropped to their lowest amount since then as well.
"Given the return of some risk appetite and the influx of bargain hunters into the equity markets, gold seems likely to face further pressure in the coming sessions," states a report by analyst James Moore of TheBullionDesk.com in London. Nonetheless, "we expect the dip buying mentality to continue with gold remaining underpinned by investment demand."
At 6:25 a.m. on Monday, gold futures dropped 0.07 percent, a $1.30 fall to $1,741.30 per troy ounce.
Italy, owner of the euro zone's third-largest economy, holds one of the highest debts in the region, according to The Associated Press. European Union officials have worked toward containing the contagion but many nation's banks and public finance systems are suffering from the scourge.
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