SMM: COMEX futures closed down nearly 3% on Monday as uncertainty about more fiscal stimulus in the United States triggered a broader market sell-off and a stronger dollar, putting pressure on the precious metals market.

Monthly gold futures in COMEX12, the most actively traded, fell 51.50 U.S. dollars, or 2.6 percent, to settle at $1910.6 an ounce at 13:30 new York time. At one point in intraday trading, it fell to $1885.40.

December silver futures fell $2.742 to settle at $24.387 an ounce.

Platinum futures for October fell $62.40 to settle at $876.1 an ounce.

December palladium futures fell $99.10 to settle at $2281.70 an ounce.

In addition, the COMEX12 monthly copper contract fell 8.40 cents to settle at $3.0320 a pound.

Analysts said the sell-off in global stock markets exacerbated negative sentiment, in part because of concerns about the rise in COVID-19 cases and the possibility of renewed restrictions on economic activity, as well as uncertainty about a new round of government rescue measures.

BobHaberkorn, senior market strategist at RJOFutures, said: "Gold prices should rise on the back of safe-haven demand, but today's move is a bit like a repeat of the spring market sell-off, when market participants sold assets across the board."

"the lack of safe-haven buying followed the decline in the stock market, and the strength of the dollar also exacerbated the weakness."

Wall Street's main stock index hit its lowest level in nearly seven weeks on Monday, with the dollar index rising 0.8%, its biggest one-day percentage gain since March 19.

CraigErlam, a senior market analyst at Oanda, said gold was "once again unable to provide shelter in these dangerous times". "on the contrary, the dollar is making a big stride higher, which puts further pressure on commodity markets, and gold also falls with it."

In addition to the about $3 trillion in aid that has become law, congressional negotiations over the size and form of a fifth round of bailout legislation have failed to make progress for weeks. "the chances of Congress agreeing on any stimulus package by January are close to zero," said TagWong, head of basic and precious metal derivatives trading at Mandike Bank.

Investors are waiting for Fed policy makers to speak, including Federal Reserve Chairman Colin Powell, who will testify in Congress later this week.