Gold backs off 2-week high on profit taking

Gold prices fell on Monday, and gave up a 2-week high hit earlier due to profit-taking, to head for the first daily loss in 3 days, as the safe-haven demand slowed down while investors' risk-appetite improved.

Gold prices fell 0.75% to $1,748.78 an ounce, after opening at $1,762.10, and hit a high of $1,765.65.

Gold closed higher by 0.2% on Friday, the second straight daily gain within recovery from a 7-week low, and after the US Treasury bond yield's rally halted.

Gold prices gained 0.5% last week, the first weekly gain in a month, as the Chinese demand improved.

Safe-haven demand slowed after the interim results of the clinical trials of an experimental oral COVID-19 antiviral drug showed it reduces the risk of hospitalization or death by almost half, after a pill of the drug “Molnupiravir” was administered twice daily to patients.

The US company Merck said that the results of the orally administered drug are so positive that it will apply for an emergency use license for the drug in the US in two weeks.

Gold stocks at the SPDR ETF fell by 3.49 metric tonnes on Friday, with the total at the lowest level since April 7, 2020 of 986.54 metric tonnes.