Dow Jones – The price of gold slipped on Monday morning, as the dollar edged up against the euro after the collapse of talks in Germany to form a governing coalition.
The precious metal was down 0.22% at $1,291.47 a troy ounce in mid-morning trade.
Copper was also down, falling 0.52% to $6,728.50 a metric tonne. US Commodity Futures Trading Commission data released Friday revealed that hedge funds sold the base metal for a third-straight week last week.
The euro came under pressure overnight after German Chancellor Angela Merkel's attempts at forming a German government coalition broke down, throwing the direction of Europe's largest economy into doubt.
That prompted gold in euro terms to climb, according to Commerzbank in a note. Gold in dollar terms was relatively unaffected by Germany's political crisis "because the euro has depreciated due to the failed talks," Commerzbank said.
The WSJ Dollar Index, which measures the currency against a basket of 16 others, gained 0.02%, having halted the losses which began late last week.
It is unclear how the process of forming the next German government will proceed, but "while it is understandable that there has been knee-jerk euro sell-off we see no clear reasons at the current juncture to materially alter our outlook for a stronger euro," said Lee Hardman, a currency analyst at MUFG in a note.
Euro watchers were expected to monitor speeches from European Central Bank executive board members over the course of the coming days, with US jobs data expected Wednesday also in focus ahead of the US Thanksgiving holiday.
Among precious metals, silver was down 0.69% at $17.19 a troy ounce, palladium rose 0.66% to $998.50 a troy ounce and platinum fell 1% to $944 a troy ounce.
With the base metals segment, zinc fell 0.71% to $3,160.50 a metric tonne, aluminium declined 1.37% to $2,080.50 a metric tonne, tin was flat at $19,500 a metric tonne, nickel dipped 0.22% to $11,570 a metric tonne and lead fell 0.59% to $2,430.50 a metric tonne.