Gold prices turned slightly negative on Monday, reversing gains of 1 percent on pressure from strong crude futures and U.S. equity markets.
Bullion prices were initially supported by lower stock markets and soft Chinese data, which boosted interest in the metal as an alternative asset. Gold prices sharply pared gains, by more than $4 in just two minutes from 10:30-10:32 a.m. as Wall Street turned higher.
"This whole drop in gold centers around equity markets," said Bob Haberkorn, senior market strategist for RJO Futures in Chicago. "At the same time stocks started rallying, and popped pretty quick, gold fell."
Crude futures hit a six-month high as output disruptions were expected to reduce a long-standing glut in the market, leading Wall Street higher. The benchmark U.S. Treasury yield rose and the dollar ticked lower, caught between a weaker Japanese yen and a stronger euro.
Data from China over the weekend showed April's retail sales, factory output and fixed-asset investment all fell short of forecasts by economists polled by Reuters.