(Updated for stock prices)NEW YORK (TheStreet) -- Inflation worries -- or, in Monday's case, the lack of them -- continue to tilt gold prices and gold stocks.

The December gold futures contract slipped below $1,000 an ounce in overnight trading Monday and did the same when pit action began on the New York Mercantile Exchange. The contract was trading Monday morning at $998.4, down $11.90, or 1.18% from Friday's close.

As the dollar strengthened on Monday, gold, the world's most popular inflation hedge, couldn't hold on to a recent rally that saw the precious metal remain above the $1,000 level for six straight trading sessions.

Said Gavin Newsom, senior commodities analyst at DTN, "We're just not building that strong of an inflationary argument right now."

But Newsom said that a correction in the stock market would set gold up to move toward, if not through, the record highs set in March.

Gold mining stocks fell in sync with the metal. Among the majors,

Barrick

(ABX)

,

Gold Corp.

(GG)

and

Newmont Mining

(NUE) - Get Report

all lost 3% to $35.92, $39.92 and $43.64, respectively.

AngloGold Ashanti

(AU) - Get Report

, however, led gold stocks to the downside. American depositary receipts of the South African company gave up 6% to $40.99 in brisk trading on the

New York Stock Exchange

.

Elsewhere,

Yamana

(AUY) - Get Report

lost 4.8% to $10.37, and

Freeport McMoRan

(FCX) - Get Report

retreated 2.2% to $68.60.

-- Written by Scott Eden in New York

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Scott Eden has covered business -- both large and small -- for more than a decade. Prior to joining TheStreet.com, he worked as a features reporter for Dealmaker and Trader Monthly magazines. Before that, he wrote for the Chicago Reader, that city's weekly paper. Early in his career, he was a staff reporter at the Dow Jones News Service. His reporting has appeared in The Wall Street Journal, Men's Journal, the St. Petersburg (Fla.) Times, and the Believer magazine, among other publications. He's also the author of Touchdown Jesus (Simon & Schuster, 2005), a nonfiction book about Notre Dame football fans and the business and politics of big-time college sports. He has degrees from Notre Dame and Washington University in St. Louis.