Gold prices fell sharply on Monday, pressured by a stronger U.S. dollar and improved risk sentiment in the broader market. The dollar’s resurgence made gold, which is priced in dollars, more expensive for buyers holding other currencies.

Increased risk appetite also contributed to the decline in gold. As investors become more confident in the economic outlook, they tend to shift their investments away from safe-haven assets like gold and towards riskier assets such as stocks.

Analysts noted that recent economic data has supported the dollar’s strength, while positive developments in global trade relations have boosted investor confidence.

Key factors influencing gold prices include:

• Dollar Strength: A stronger dollar typically weighs on gold prices.
• Risk Appetite: Increased risk appetite reduces demand for safe-haven assets.
• Interest Rates: Rising interest rates can make gold less attractive as an investment.
• Inflation: Gold is often seen as a hedge against inflation.

The price of gold is expected to remain sensitive to these factors in the near term.