Authorities in the nation that is dependent on exports to sustain its economy, the globe's third largest behind second-largest China and the U.S., sold the yen as part of a unilateral intervention, which instantly reduced the strength of the yen 4 percent, Bloomberg reports. The Group of 20 nations are slated to convene later this week in Southeast France, which one analyst said will leave the precious metal and other commodities rudderless.
"This week, it's all about the economic data and central bank policy meetings," analyst Matthew Turner with Mitsubishi told Reuters. "There's no real sense of direction, except for the fact that it is trading more like a risk asset."
At 10:03 a.m. on Monday, gold futures sank 1.59 percent, a $27.70 reduction to $1,719.50 per troy ounce.
The loss in value for the precious metal comes on the first day after bullion completed its strongest weekly performance since September, during which it established its record price of $1,923.70 per troy ounce.
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