Gold cut some of its earlier losses on Monday as the euro retreated and equity markets pared gains after investor euphoria for Cyprus’ last-minute bailout deal lost some momentum.
Reuters report yesterday showed that Gold hit its weakest since March 15 at $1,589.49 earlier. It was seen down 0.3 percent to 1602.91 an ounce by 1543 GMT. Prices were still on course for their first monthly gain however – standing around one percent higher on the previous month so far – after posting declines every month since October.
Some investors had picked up gold as the crisis in Cyprus had re-ignited euro zone debt fears, sending bullion to a one-month high of $1,616.36 an ounce last week.
The deal with international lenders averted a collapse of the island’s banking system, leading the precious metal down.
U.S. gold futures for April delivery also dipped to a 10-day low of $1,588.40 and were later seen at $1,601, still down 0.3 percent.
The metal broke strong technical support at $1,600 but managed to regain some lost ground, at least for now. Traders said that a sustained push below that level would see the metal enduring further losses.