Gold prices fell on Monday as the dollar and stocks rallied, after federal investigators cleared Democrat Hillary Clinton of criminal charges related to her use of a private email server, just two days before the U.S. presidential election.
The Federal Bureau of Investigation (FBI) said on Sunday it stood by its earlier finding that no criminal charges were warranted against presidential candidate Clinton for using a private email server for government work.
Uncertainty over the outcome of the U.S. election after the FBI probe had boosted the safe-haven appeal of gold, sending prices 2 percent higher last week.
"I think the news has just taken a bit of the heat out of that safe-haven buying for gold that emerged last week after Republican candidate Donald Trump gained in a lot of polls in the U.S.," ANZ analyst Daniel Hynes said.
Gold prices are going to hover around $1,290-$1,300 for the next couple of days, analysts said.
"If Clinton wins there's going to be a further correction in prices and gold may even go down to $1,250. We say this because we see a strong correlation between gold prices and Trump's popularity in the polls," said Joshua Rotbart, managing partner at Hong Kong-based bullion services provider J. Rotbart & Co.
The reopening of the probe by the FBI narrowed Clinton's lead over Trump, polls showed last week, rattling financial markets that had been pricing in a Clinton victory and driving up gold prices to a one-month high on Thursday.