While concerns for China are impacting the market, investors have begun scrutiny of the Federal Open Market Committee, the policy-making arm of the U.S. Federal Reserve as the body that sets interest rates in the U.S. is slated to convene on Tuesday. The precious metal is sensitive to interest rate adjustments and speculation about the body with jurisdiction over interest rates.
"Market sentiment remains shaky," states a report authored by commodity research head Tobias Merath with the private banking unit of Credit Suisse Group, according to Bloomberg. "This week's FOMC meeting will be the next key event risk."
At 3:32 p.m. on Monday, gold futures dropped 0.75 percent, a $12.90 loss to $1,698.60 per troy ounce.
MarketWatch reports the precious metal's losses on Monday occur after a bullish run of three consecutive sessions. China publicized its February trade deficit of $31.48 billion, which comes one month after a January surplus of $27.28 billion.
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