Gold dropped Monday from its six-month recorded high set on Friday as oil fell and the U.S. dollar showed strength. Silver and platinum declined as well. In an end to the day, New York silver, gold and platinum futures lost 1.2 percent, 2.2 percent and 1.2 percent, respectively.
March crude-oil tumbled $1.60, or 3.8 percent, to close to $40.08 a barrel. The average price for regular unleaded gasoline climbed 1.3 cents to $1.88 a gallon, according to AAA.
March silver lost 15 cents to close at $12.415 an ounce.
April platinum fell $12.20 to $979.10 an ounce.
Gold for February dropped $20.60 to settle at $906.70 an ounce.
"Gold prices underwent a substantial decline on this first trading day of February, more than giving back Thursday and Friday’s gains, which had propelled them to six-month highs," said senior analyst Jon Nadler at Kitco Bullion Dealers.
"The decline in the precious metal was largely attributed to dollar strength against the pound, slumping physical demand in another key market (Abu Dhabi), and to profit-taking among participants returning from the Chinese New Year celebration period," added Nadler.
In spot trading, the London afternoon gold-fixing price — a benchmark for gold traded directly between big institutions — stood at $918.25. London silver and platinum were at $12.43 and $966, respectively.
Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.