George Gero, senior vice president at RBC Capital Markets, says that commodities "could see sell stops later in the day in general as dollar picks up a little," meaning that traders are forced to sell as gold, for example, if it breaks below a certain level.

Although some experts think that investors will be reluctant to truly abandon large gold positions as a rally to $1,500 is still waiting in the wings. "Ongoing concerns of EU debt, low interest rates and ongoing inflation concern are bullish longer-term for gold and silver with dips to be viewed as a buying opportunity," says James Moore, research analyst at FastMarkets.

Gold mining stocks, a risky but potentially more profitable way to buy gold, closed mostly lower Monday. Barrick Gold ( ABX) lost 3% to $52.70 while Newmont Mining ( NEM) was down 2.3% to $56.61.

Other gold stocks, Randgold Resources ( GOLD) and AngloGold Ashanti ( AU) were down between 2% and 4% to $85.33 and $48.89, respectively.


More on Gold
Gold Price News
How to Invest in Gold

-- Written by Alix Steel in New York.

>To contact the writer of this article, click here: Alix Steel.

>To follow the writer on Twitter, go to http://twitter.com/adsteel.

>To submit a news tip, send an email to: tips@thestreet.com.
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

If you liked this article you might like

How to Trade Red-Hot Gold While Everyone Obsesses Over Bitcoin

Barrick Gold Glitters Enough to Draw Buyers

Little Reason to Buy, Plenty for Concern

If There's a Rally, It Won't Last Long