Gold prices drifted lower on Monday as global stocks turned weak due to concerns over the growing unrest in China amid widespread protest against the government over stringent Covid-related restrictions in several areas across the country.
The dollar has surged higher on safe-haven demand. The dollar index, which climbed to 106.52, was up 0.45% at 106.44 a little while ago.
Gold futures for December ended lower by $13.70 or about 0.8% at $1,740.30 an ounce.
Silver futures for December ended down $0.515 at $20.915 an ounce, while Copper futures for December settled at $3.6115 per pound, down $0.0160 from the previous close.
As a surge in new Covid cases in China led officials to impose new restrictions in several major cities, widespread protests against the Beijing’s zero-Covid policy broke out over the weekend.
Craig Erlam, senior market analyst at OANDA, said the protests “highlight how increasingly frustrated the public is becoming with the leadership’s zero-Covid policy.”
“Record cases across multiple cities are putting the policy to the test and the unrest highlights the enormity of the challenge facing President Xi Jinping and his commitment to zero-Covid,” Erlam said.