Gold prices fell on Monday to deepen their losses for the third consecutive day, the lowest level in three weeks, due to the strong performance of USD against a basket of currencies, and concerns about the actual demand in China, the world’s largest consumer of metals.

Gold prices fell by more than 0.2% as of 11:22 GMT to trade at $ 1,278.45 per ounce from the opening level of $ 1,281.08, and recorded the highest level of $ 1,283.54, and the lowest level of $ 1,277.58 the lowest since January 4.

Gold prices lost 0.85% on Friday, their second consecutive daily loss, and the biggest daily loss since November 9, as USD rallied.

Gold prices fell 0.5% over last week’s trading, the first weekly loss in the last five weeks, and the first weekly loss in 2019. Unlike the US dollar, demand for the metal has declined as a safe haven as the US-China trade talks progress.

The dollar index rose 0.1% on Monday, extending its fifth consecutive day of gains, approaching the two-week high, reversing the greenback’s rally against most of its major and minor currencies, putting pressure on metals and commodities denominated in US dollars.

The USD rally is currently supporting 10-year US bond yields near a three-week high of 2.799%, as fundamentals continue to support these returns despite recently dropping 3.00%.

Gold holdings at SPDR Gold Trust The world’s largest gold-backed fund rose Friday by 12.05 metric tons, the largest daily increase since December 26, bringing the total to 809.76 metric tons, the highest level since June 29, 2018.