Monday's losses mark the first drops in the past three trading sessions as the U.S. dollar drove higher against the shared currency of the European Union for the first time in about a week.
Next month is forecast to see consumer confidence slide in Germany, host of the euro zone's healthiest economy, according to GfK SE. The losses would mark the first slippage in seven months.
"There is some backpedaling today because the dollar is stronger and there is nothing new out of Europe," senior commodity broker Phil Streible with R.J. O'Brien & Associates told the news source on Monday. "Also, we are seeing some profit-taking after the nice rally on Friday."
At 12:21 p.m. on Monday, gold futures fell 0.23 percent, a $3.95 loss to $1,749.05 per troy ounce.
Month-long high point
Gains for the yellowish metal this past Friday pushed it to its top value in more than 30 days, Reuters reports.
The upward drive this past Friday was 1.5 percent and it prompted some investors to cash in and take profits.
Trading volume on Monday also was higher than normal, marking a second consecutive session of increased activity.
The yellowish metal's losses on Monday monitored the downward drive of weaker equities and commodities.
"Most of the activity came from CTAs (Commodity Trading Advisors) and hedge funds who were either adding to longs or reversing their shorts. It seems that the expectations for the Fed's planned actions are stronger now than they had been before the election," broker Carlos Perez-Santalla with PVM Futures told Reuters.
Fiscal cliff concerns daunt
The price of gold futures is also likely to be impacted by negotiations conducted by political leaders in Washington regarding the fiscal cliff.
As the year drives toward a close, automatic tax hikes and spending cuts are looming. The $600 billion price connected with the fiscal cliff threatens to return the U.S. economy into a recession.
The negotiations are between U.S. President Barack Obama and members of the U.S. Congress.
The appetite for gold from China, host of the globe's second-largest economy, is strong and vibrant, The Wall Street Journal reports.
That news is potentially beneficial for junior gold prospectors in Australia that are in search of financing, the news source reports.
On Monday, Sovereign gold indicated it finalized 15 million in Australian currency from Jiangsu Geology & Engineering, which is a state-owned Chinese service.
The firm initially agreed this past March to put up $6 million in Australian currency.
The U.S. dollar benefited from finance ministers of euro zone nations convening on Monday in Brussels to discuss Greece's fiscal health, according to Bloomberg.
The gains for the dollar mark the first gains for the world's reserve currency against the embattled monetary unit in roughly one week of trading.
Gold and the U.S. dollar typically perform the inverse of one-another and gold tracks the performance of the shared currency.
The Monday meeting of the finance ministers marks the third in three weeks. Most recently, the ministers met last week and, despite negotiations lasting late into the evening, they did not resolve issues that would help free international bailout aid to the Aegean nation.
But, despite the challenges, many analysts are optimistic about international creditors lending money to Greece.
Greece is the emblem of the sovereign debt crisis' damaging tendencies during the past nearly three years. On two occasions within an 18-month span, Greece requested international bailout aid and the nation has implemented deep austerity measures, contrary to the will of Greek nationals who have protested the moves.
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