Gains to the U.S. dollar pulled down gold futures on Monday as the precious metal endured losses nearing 1 percent, according to Reuters.
But the monetary easing policies announced by worldwide central banks earlier this month bode well for bullion in the long term.
"There are a number of low growth concerns which could underpin the dollar, and keep gold somewhat moribund near term," analyst Daniel Brebner with Deutsche Bank told the news source. "But I do think we will likely see over the next quarter or so greater policy action both in Europe and China to support growth within those regions. The likelihood is for further accommodative monetary policy in both regions, and that could keep the gold price moving higher."
At 12:44 p.m. on Monday, gold futures fell 0.72 percent, a $12.80 loss to $1,765.20 per troy ounce.
MarketWatch reports gains to the U.S. dollar were attributable to concerns about Greece and Spain, two debt-hobbled euro zone nations that are undergoing financial troubles and prompting growing preoccupations about Europe's capacity to handle the sovereign debt crisis.
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