Gold extended its first weekly decline in three as the prospect of more monetary tightening and ebbing haven demand kept prices subdued. 

Bullion dipped 0.2% last week on signs the Federal Reserve and the European Central Bank will keep raising interest rates, a negative for non-interest-bearing gold. The precious metal has mainly traded in a narrow range between $1,940 and $1,980 an ounce this month.

Other pillars of support for gold, including turmoil in the banking sector and the US debt-ceiling standoff, have also eased in recent weeks. Still, the metal is trading at relatively elevated levels, even as initial signs of a selloff in exchange-traded funds emerge.

More pressure came Monday following a meeting between Chinese President Xi Jinping and US Secretary of State Antony Blinken, which raised hopes the two countries relationship could reach a more stable footing. Gold is often bought as a hedge against geopolitical tensions.

Spot gold declined 0.4% to $1,949.43 an ounce as of 12:40 pm. in London. The Bloomberg Dollar Spot Index strengthened 0.2% after falling 1% last week. Silver, platinum and palladium all fell.

Source : Bloomberg