Gold retreated on Monday as the dollar rose versus the euro, but the metal held around a nine-week high as pressure on stock markets continued to support investors' flight to safety. "Some investors were anticipating that gold futures were slightly overbought after the run-up last week," said Phillip Streible, senior commodities broker for RJO Futures in Chicago.

"Traders booked profits on that run-up to $1,100, possibly to free up margins to support other positions that have recently been beat up but still have long-term prospects." Spot gold was down 0.7 percent at $1,095.76 an ounce at 3:03 pm EST (2003 GMT), while US gold futures for February delivery settled down 0.2 percent at $1,096.20. "There is a bit of short rally now, it seems that gold has encountered resistance at the 100-day moving average, which comes in at $1,109," Mitsubishi Corp strategist Jonathan Butler said.

"We see things being tough in the first half and that's related to a probable increase in rates again towards June, the dollar could have a little more strength from here, especially if Europe or Japan extend quantitative easing." Palladium fell to its lowest since August 2010 at $477.22 an ounce, while platinum was down 4.2 percent at $838.71 an ounce. Silver dropped 0.5 percent at $13.86 an ounce.

Copyright Reuters, 2016