Gold fell on Monday, tracking a slight drop in crude oil, but trade was thin in much of Asia at the start of a holiday-packed week. But lower bullion prices could attract more purchases during the marriage season in main consumer India, where gold jewellery forms an essential part of the dowry basket.
Spot gold eased to $679.70/680.20 an ounce from $681.30/681.80 late in New York on Friday, when it gained nearly $7 on news of a foiled al Qaeda-linked plot to attack Saudi Arabia's oil facilities and military bases, including some trainee pilots preparing for suicide operations.
Tokyo gold futures were closed on Monday, Thursday and Friday for Japan's Golden Week holidays. Markets in China will be closed for a week from Tuesday, also for the May Golden Week holidays.
"The rally that has been beating gravity for almost two months in a row has been showing signs of exhaustion for quite a while," said Pradeep Uni, analyst at Vision Commodity Services in Dubai. "But consistent support from the physical market ahead of key marriage season in India has brought in renewed hopes that markets would hold on to the gains," he said.
Gold hit an 11-month high of $693.60 on April 23. Dealers pegged support at $673 and $670. A break below those levels could bring gold to around $660 a level last seen in March. The benchmark most-distant April 2008 gold contract on the Tokyo Commodity Exchange closed down 36 yen, or 1.4 percent, at 2,614 yen on Friday, after moving between 2,607 yen and 2,620 yen.
Brent crude oil prices hovered above $68 a barrel on Monday following sharp gains at the end of last week, with investors still on edge over a foiled plot to attack oil facilities in top exporter Saudi Arabia.
The euro dipped to $1.3627 from near $1.3650 late on Friday when it climbed as high as $1.3683, the strongest since its 1999 launch. Platinum fell to $1,285/1,292 an ounce from $1,286/1,291 an ounce. Palladium fell to $369/374 an ounce from $370/375 late in New York. Silver dipped to $13.47/13.50 an ounce from $13.54/13.57.