Gold prices fell further on Monday as the strong dollar weighed on metal demand, with sparse trading expected due to a U.S. market vacation.
As of 0203 GMT, spot gold was down 0.2 percent at $1,836.67 per ounce. Gold futures in the United States were unchanged at $1,840.00.
The dollar index was near its highest level in nearly two decades, making greenback-priced bullion less appealing to foreign investors.
“Today is a U.S. federal holiday, which means liquidity — and consequently volatility — will be reduced, making directional moves on gold difficult without a fresh catalyst,” City Index senior market analyst Matt Simpson said.
For the Juneteenth holiday, federal government offices, the Federal Reserve System, and stock and bond markets in the United States will be closed on Monday.
Asian stocks were unable to extend a rare surge, with Wall Street futures shedding early gains on concerns that the US Federal Reserve would reiterate its commitment to fighting inflation with whatever rate hikes are required this week.
“Gold has been trading in a turbulent range between $1,805 and $1,880 since May 19. As a result, it is more of a trading market than an investment market. Traders are likely to buy dips above $1,800 and sell rallies below $1,880, according to Simpson.
The appeal of gold, which pays no interest, was weakened by a stronger dollar and interest rate hikes by major central banks in the previous week.
However, the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, reported a 1.1 percent increase in holdings to 1,075.54 tonnes on Friday, up from 1,063.94 tonnes on Thursday.