Gold falls while dollar strengthens

The price of gold fell slightly on Monday morning.

The US currency received support against the backdrop of ongoing protests in China while negatively affecting the precious metal.

The price of December futures for gold on the New York Comex fell by $3.15, or 0.18%, to $1,750.85 per troy ounce. December futures for silver fell 0.76% to $21.267 an ounce.

The dollar index (the exchange rate against a basket of currencies of six US trading partners) rose by 0.36% to 106.34 points. A stronger dollar makes gold less affordable for buyers holding another currency.

All eyes in the markets are on China where tightening quarantine restrictions sparked protests, including in Shanghai and Beijing. The country is registering a record number of new daily infections for the fourth consecutive day, with 39,791 new cases detected on Saturday.

Traditionally more reliable than other currencies, the dollar is buoyed by fears over China, as lockdowns across the country hurt the economic outlook and markets fear a recession.

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