Gold falls from 14-month high on profit taking

Gold prices fell on the European market on Monday, extending losses for the second day in a row, on correction and profit taking from a 14-month high, as well as the US dollar rally against a basket of global currencies ahead of the Federal Reserve meeting.

Gold prices fell more than 0.5% as of 11:15 GMT, to trade at $1,334.25 per ounce from the opening of $1,341.41, with the highest at $1,343.53, and the lowest at $1,332.99.

Gold prices lost 0.1% on Friday, the first loss in three days, after it hit a 14-month high of $1,358.14 per ounce in earlier trading.

The yellow metal gained 0.3% last week, its fourth weekly gain in a row, among the longest weekly gains streak this year, based on the high demand for the metal as a safe haven, as well as strong prospects for lower US interest rates.

The dollar index rose 0.1% on Monday, extending its gains for the fourth day in a row, reaching a two-week high of 97.59 points, reflecting the continued rise of the US dollar against a basket of major and minor currencies.

The dollar's rally came after positive US economic data on retail sales and industrial production for May, which has eased the concerns about the slowdown in the growth of the world's largest economy in the second quarter of this year.

The Federal Reserve will begin its regular meeting on Tuesday to discuss the monetary policy for US economic developments, with the release of its decisions on Wednesday. as the meeting is expected to provide clear evidence of the possible cuts in interest rates this year.

Gold holdings at SPDR Gold Trust (The world's largest gold-backed index) rose by 4.4 mt on Friday, bringing the total to 764.1 mt, its highest since April 3.