Gold prices fell on the European market on Monday in the beginning of the week, the first loss in three days, due to high levels of the dollar against a basket of currencies, in conjunction with the slowdown in demand for the metal again as a safe haven.

Gold prices fell by 0.3% as of 10:55 GMT to trade at $ 1,223.34 per ounce from the opening level of $ 1,227.31, and recorded a high of $ 1,229.57 and a low of $ 1,222.27.

Gold ended Friday’s trading up 0.1%, the second consecutive daily gain, supported by the decline of the US dollar against a basket of currencies.

Over the past week, the yellow metal has gained 0.7%, the third weekly gain in a row, amid high investment demand for the metal as a safe haven, as risk increases in financial markets.

The dollar index rose more than 0.1% on Monday, resuming gains that were temporarily suspended on Friday, approaching a two-week high, reversing the greenback’s gains against most major and minor currencies.

The rise in the US currency comes amid buying activity as the best alternative investment, given the negative pressure facing the European currencies, the Euro and the Pound Sterling, especially those linked to concerns of the Italian budget and the difficulty of completing the separation of Britain from the European Union.

USD also supports strong prospects for the Federal Reserve to continue tightening monetary policy at a pace consistent with strong and sustained growth in the country and raising US interest rates for the fourth time this year at the December meeting.

Gold holdings at SPDR Gold Trust The world’s largest gold-backed index fell 2.94 mt on Friday, its first daily drop in two weeks to a total of 745.82 mt, down from a record high since August 31.