Gold set for first annual decline in three years

Gold fell on Monday as equities gained on likely progress in Sino-U.S. trade standoff, amid bullion prices heading for their first annual decline since 2015, losing to the dollar mostly on trade worries and rising interest rates.

However, the precious metal was on track for its best month since January 2017, having scrambled back from sharp declines in the year due to volatility in equities and a subdued dollar, along with worries over slowing global growth.

Spot gold fell 0.2 percent to $1,279.17 per ounce as at 0622 GMT on Monday, near a six month high of $1,282.09 it hit on Friday.

U.S. gold futures dipped 0.1 percent to $1,281.5 per ounce.

Higher interest rates make gold less attractive since it does not pay interest and costs to store and insure.

Gold dropped over 15 percent from a peak of $1,365.2 in April to a 1-1/2-year low in August this year to $1,159.96. The yellow metal has gained nearly 10 percent since then.

(REUTERS)