Bullion rallied close to 2.00% last week on concerns that North Korea was preparing to conduct another missile test over the weekend. The weekend passed without any fresh flare up, easing geo-political tensions, which in turn resulted in significant outflows from the safe-haven assets like gold. Investors were also worried about the economic impact of Hurricane Irma that made landfall in Florida on Sunday.
The hurricane has since been downgraded to a tropical storm. Ebbing worries over North Korea and the weaker-than-expected storm helped the US dollar moderately from its recent losing streak. Strength in the greenback typically puts pressure on dollar-denominated gold prices on a historical basis. XAUUSD was last seen around $1325 an ounce with $1323 representing the immediate downside support, a breach of which could see selling pressure intensify.