2017.10.2302:48:00UTC+00Gold Prices Touch More Than 2-Week Low as Dollar Rallies Against Yen

Gold prices notched its lowest in more than two weeks on Monday, while the dollar rose to over a three-month peak against the yen after Japan's ruling bloc obtained a huge victory in Sunday's election, which implies that ultra-loose monetary policy might extend longer.

Spot gold fell 0.4 percent at $1,275.70 per ounce, after reaching its lowest since Oct. 6 at $1,273.80 previously in the session.

U.S. gold futures for December delivery dropped 0.3 percent to $1,277.20 an ounce.

"There's no news on North Korea this past week or so. If some news comes out, gold might be supported but at the moment people are just watching the dollar", according to Yuichi Ikemizu at ICBC Standard Bank in Tokyo.

Geopolitical risks can raise demand for safe-haven assets like gold and the Japanese yen.

The dollar also increased versus a basket of major peers, bolstered by a rise in U.S. Treasury yields and progress in tax reforms.

Spot gold could seek support in a narrow zone of $1,271-$1,273 an ounce before rising towards $1,283, according to Reuters technicals analyst Wang Tao.

Among other precious metals, silver fell 0.3 percent at $16.95 per ounce. Platinum dropped 0.7 percent to $913.90 per ounce while palladium was down 0.6 percent to $969.