SINGAPORE, Aug 25: Gold fell 1.2 per cent on Monday, losing some of its safe-haven appeal as the US dollar strengthened against other currencies, while weaker oil prices also prompted investors to ditch their bullion holdings.

But the metal could find support around $800 an ounce, with the help of buying from jewellers ahead of the festive seasons especially in main consumer India. Other precious metals also weakened.

Gold slipped to $817.45/818.45 an ounce from $827.00/828.60 an ounce late in New York on Friday but was off nine-month lows around $773 hit in mid-August.

Demand for gold in India normally picks up ahead of Diwali, the Hindu festival of lights in October, as people buy gold for auspicious reasons. Also, many Hindi marriages are likely to be held between September and November, said dealers.

Jewellery demand from Italy and India will gradually improve. $800 will be maintained, said Yukuji Sonoda, precious metals analyst at Daiichi Commodities in Tokyo.

Bullion investors would also be looking at the price of crude oil for direction.

Oil fluctuates every day, but $110 is the bottom price, the Daiichi analysts said.

Oil lost 34 cents to $114.25 a barrel, having fallen 5.4 per cent on Friday, the biggest one-day drop in per centage terms since Dec. 27, 2004, as supply concerns waned.

Gold futures for December deliveryon the COMEX division of the New York Mercantile Exchange lost $9.7 an ounce to $823.90.

The dollar continued to make gains, hitting a two-year high against sterling after data last week showed Britain’s economy was stalling, raising the prospect for monetary easing by the Bank of England.

Comments by influential investor Warren Buffett that he has no bets against the dollar also added to the dollar’s upward momentum.

Spot platinum dropped to $1,402.50/1,422.50 an ounce from $1,425.50/1,445.50 an ounce late in New York.

Spot palladium inched down to $280.00/288.00 an ounce from $285.00/293.00 an ounce.

Silver fell to $13.16/13.22 an ounce from $13.33/13.41 an ounce late in New York.

—Reuters