Gold prices slipped on Monday as a rebound in equities dented the metal's safe-haven appeal, while investors evaluated steps taken by authorities to calm fears of a crisis in the global banking system, reports Reuters.
Spot gold was down 1.4 per cent at $1,949.99 per ounce as of 1219 GMT. US gold futures fell 1.5 per cent to $1,954.20.
A buyer for Silicon Valley Bank's deposits and loans helped shares in European lenders mount a partial recovery, sending gold further below the $2,000 mark breached last week.
"After kissing the psychological $2,000 level last week, bears exploited this resistance to attack. Appetite for the precious metal has also been dampened by a stabilising dollar and mixed signals on monetary policy from the Fed," said Lukman Otunuga, senior research analyst at FXTM.
Recent stress in the banking sector and the possibility of a follow-on credit crunch bring the U.S. closer to recession, Minneapolis Fed president Neel Kashkari said on Sunday. However, US Federal Reserve officials said there was no indication that financial stress was worsening.
Spot silver fell 1.2 per cent to $22.96 per ounce, platinum lost 1.1 per cent to $965.94 and palladium rose 0.3 per cent to $1,420.44.
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