Gold prices continued to move away from two -and -a -half -month highs with a lower decline on Tuesday as the king of the US dollar returned to show gains.
Entering the European session, spot gold traded 0.4% lower at $ 1,816 per ounce, while gold futures also declined around $ 1,819 per ounce.
Despite the decline, gold still held above the $ 1,800 per ounce price level with support by a disappointing US NFP jobs report reading late last week.
The greenback, meanwhile, rose slightly against most major currencies but with a modest rise, bounced back from a one -month low it reached on Friday.
Several policy meetings this week are the focus of the market, which will see the European Central Bank (ECB) and Canada (BOC) announce their monetary policy decisions.
Gold tends to rise if central banks take a dovish approach by continuing to maintain their massive stimulus measures.
The Reserve Bank of Australia (RBA) has maintained their plan to reduce bond purchases but extended it until February next year.
While the RBA’s decision to reduce purchases was seen as hawkish but an extension in the implementation period saw the central bank stuck in uncertainty as a result of Covid-19.
