LONDON, Jan 21: Gold hit an 11-day low on Monday as a weaker euro versus the dollar encouraged investors to lock in profits from last week’s run to record highs, but broader financial market uncertainty was seen limiting losses.

Spot gold stood at $868.60/ 869.80 per troy ounce compared with $881.90/882.60 in New York quoted late in New York on Friday. Market volatility was high, due to the US.

The market is now some 4.5 per cent away from the record highs hit at $914 per ounce last week, but dealers and analysts said prices could benefit eventually as worries over the possibility of a US recession intensify.

Global markets were dominated by battered stocks and demand for safe-haven bonds as investors worried that a troubled US economy would drag others down with it.

Commodities opened the year spectacularly, it’s only natural really that we see some profit-taking as the gold market was very long. The currencies have been the main factor this morning, analyst James Moore of TheBullionDesk.com said.

For Monday, currency fundamentals remained unfavourable, with the euro down almost 1 per cent on the day versus the dollar.

Money being taken off the table in gold was reflected in holdings of bullion on StreetTRACKS Gold Shares, the world’s largest gold-backed ETF, which fell to 622.76 tons on Jan. 18 from 629.83 previously.

On other bullion markets, the benchmark December contract on the Tokyo Commodity Exchange closed at 3,007 yen a gram, down 44 yen or 1.4 per cent from Friday’s close.

COMEX gold futures dropped in Asia after closing slightly up in New York on Friday. The most active February contract was down $12.90 or 1.4 pc at $868.90 from its New York settlement on Friday.

Silver eased to $15.81/15.86 per ounce from $16.14/16.19 late in New York on Friday. Platinum fell to $1,547.50/ 1,552.50 an ounce from $1,556/1,561 on Friday, while palladium eased to $365.50/ 370.50 an ounce from Friday’s US levels of $367/372.—Reuters