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Global gold price plunges as dollar rallies

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Gold price hit its lowest in over two weeks on Monday, as the dollar climbed to a more than three-month high versus the yen after Japan's ruling bloc scored a big win in Sunday's election.

Spot gold was down 0.4 per cent at $1,275.70 an ounce by 0313 GMT, after hitting its lowest since Oct. 6 at $1,273.80 earlier in the session, reports Reuters.

US gold futures for December delivery fell 0.3 per cent to $1,277.20 per ounce.

Geopolitical risks can boost demand for safe-haven assets such as gold and the Japanese yen.

Japanese Prime Minister Shinzo Abe's Liberal Democratic Party-led (LDP) coalition won a combined 312 seats, keeping its two-thirds "super majority" in the 465-member lower house, local media said.

The dollar also rose against a basket of major currencies, supported by a rise in US Treasury yields and progress in tax reforms.

Spot gold may seek support in a narrow zone of $1,271-$1,273 per ounce before bouncing towards $1,283, Reuters technicals analyst Wang Tao said.

In other precious metals, silver was down 0.3 per cent at $16.95 an ounce.

Platinum fell 0.7 per cent to $913.90 an ounce and palladium dropped 0.6 per cent to $969.

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