Gold futures began the week on a sour note as risk aversion subsided on Wall Street. COMEX gold futures, per the December contract, settled lower by $6.80, or 0.4%, at $1,790.60 per ounce.
Gold futures opened near $1,841.50 Sunday evening, but tumbled to as low as $1,781.20 Monday morning as liquidation engulfed the yellow metal.
The reason gold futures closed lower by just 0.4% while the spot price of gold tumbled over 2.0% on Monday is because spot gold settled considerably higher than COMEX gold futures on Friday afternoon.
The Dow Jones Industrial Average (DJIA) was higher by 234.16 points, or 2.1%, at 11,518.85 this afternoon, while the CBOE Volatility Index (VIX) dropped 8.8% to 32.45.
Silver futures slid alongside gold, with the COMEX September contract falling $0.44, or 1.1%, to $40.51 per ounce.
In the currency markets, the U.S. Dollar Index (DXY) held near unchanged and the euro dipped 0.01% to 1.4499 against the greenback.