Investing.com - Gold futures fell sharply in Europe trade on Monday, as the metal’s safe-haven appeal was dampened amid a recovery in global equity markets.
Gold for April delivery on the Comex division of the New York Mercantile Exchange fell to an intraday low of $1,212.50 a troy ounce before paring some losses to trade at $1,213.30 by 08:00GMT, or 3:00AM ET, down $26.10, or 2.11%.
Gold soared to a one-year high of $1,263.90 late last week, boosted by a flight to safety. Prices of the yellow metal jumped $65.60, or 7.02%, last week, the third straight weekly gain and the best weekly performance since December 2008.
Gold futures have been well-supported in recent weeks amid indications global economic and financial headwinds could make it tough for the Federal Reserve to raise interest rates as much as it would like this year.
Market participants have all but priced out any rate hikes this year, while the Fed is anticipating four more. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Prices of the precious metal are up nearly 14% so far this year as investors seek safe havens in the face of mounting instability in other financial markets.
In the week ahead, market players will be turning their attention to Wednesday’s minutes of the Fed’s latest policy meeting for fresh indications on whether the U.S. central bank will raise interest rates at all this year.
Investors will also be looking ahead to U.S. data on inflation for further clues on the strength of the economy.
Elsewhere in metals trading, copper futures jumped more than 2%, as the latest trade figures out of China added to concerns over the health of the world's second-biggest economy.
Exports slumped 11.2% from a year earlier in January, far worse than forecasts for a decline of 1.9%, while imports dropped 18.8%, compared to expectations for a fall of 0.8%. That left China with a surplus of $63.3 billion last month, up from $60.1 billion in December.
The disappointing data reinforced the view that the economy remains in the midst of a gradual slowdown which will require Beijing to roll out more support in coming months.
The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.