CHICAGO, Feb. 11 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange plunged to a five-week low Monday due to technical selling.
The most active gold contract for April delivery fell 17.8 dollars, or 1.1 percent, to settle at 1,649.1 dollars per ounce.
With gold price falling below its 200-day moving average of 1, 665.1 dollars per ounce, gold has been under the pressure of technical selling, and dropped to the lowest level since January 7.
Meanwhile, traders are waiting on the sidelines for a possible statement from the Group of Seven meeting expected later this week. The statement may highlight a commitment to market-determined exchange rates, when many countries have maneuvered to depreciate their currencies to boost growth.
Gold usually benefit from currency devaluation, as it is a hedge against depreciating paper currencies.
Dollar's going weak against euro also dampened gold. The dollar index, a gauge of the greenback against a basket of major currencies, dropped to 80.213 on Monday from 80.234 on Friday. Gold often trades inversely with dollar.
Light trading volume in Asia as China is in a 7-day Lunar New Year holiday is also a negative to gold.
Market analysts take 1,645 dollars per ounce as a support to gold at present. If gold closes below this level, one may see more losses in possibly weeks to come.
Silver for March delivery lost 53.1 cents, or 1.69 percent, to close at 30.91 dollars per ounce. Platinum for April delivery fell 18.6 dollars, or 1.08 percent, to close at 1,696.1 dollars per ounce.