Gold extends loss on U.S. equities rebound despite weaker U.S. dollar

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Monday as U.S. equities rebounded despite a weaker U.S. dollar.

The most active gold contract for August delivery fell 2.70 U.S. dollars, or 0.21 percent, to settle at 1,292.10 dollars per ounce.

The precious metal was put under extensive pressure as the U.S. Dow Jones Industrial Average rose by 209.19 points, or 1.19 percent as of 19:00 GMT. Analysts noted that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

The precious metal was put under further pressure as the United Kingdom' s vote to leave the European Union lost momentum. U.S. investors had been displaying fear about the potential for the United Kingdom to vote on a referendum to leave the European Union. The referendum has been dubbed the "Brexit" by investors. Analysts noted that the potential for a Brexit has caused volatility in the market, driving investors to gold as a safe haven, but Monday's news was a positive sign for equities.

Gold was prevented from falling further as the U.S. Dollar Index fell on Monday. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Silver for July delivery rose 10.30 cents, or 0.59 percent, to close at 17.514 dollars per ounce. Platinum for July delivery added 21.10 dollars, or 2.18 percent, to close at 987.20 dollars per ounce. Endit