Gold prices moved lower on Monday morning as traders turned commodities into cash with markets falling around the globe. The metal's hedge appeal also declined as investors flocked to the lower-yielding U.S. dollar.
April gold fell to $916.80 per ounce, down $8.50 for the day. Prices dropped as low as $910.40 in the early going.
The U.S. dollar climbed to new multi-day highs against the European majors as concerns about the global economy prompted investors to seek the safety of the world's most liquid currency. The dollar climbed near 2-week high versus the euro and also reached as 12-day best versus the sterling.
Stock markets have declined after the U.S. government stated that bankruptcy might be the best solution for troubled automakers in the country, including General Motors, whose CEO Rick Wagoner has been forced to quit the job.
Gold plunged $16.70 on Friday as its safety value was reduced by a stronger dollar. The loss was the first in three sessions for the precious metal.
However, for the week, gold lost $35.20 for the session. Gold added $26.20 last week, boosted by a $68.70 surge on March 19 on the Fed's plan to buy as much as $1.15 trillion in bonds. The metal has declined in seven of 10 sessions.
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