According to the latest figures released, the prices of gold fell more than 1 per cent on Monday due to a stronger dollar against major currencies.

The US dollar rose against major global currencies due to a revived investor confidence in the US economy. The world's largest economy has been showing signs of strong recovery with improvements in the jobs markets and a stable housing market in the US. The price of US gold fell $6.80 to $1,429.80 an ounce.

Gold prices fell $17.10 an ounce to $1,430.60, near the Friday's $1,420.61. The level of $1,420.61 an ounce for the shiny metal is its lowest level since April 24. The price of gold has fallen about 14 per cent this year as investors switch fun looked to invest into rising equity markets and the dollar.

Some investors invest in gold as a hedge against inflation and the US central bank believes that the inflation in the country in under control. Experts say this would discourage investors from buying more gold and the bullion's status as a safe bet during crisis has also diminished.

Gold production is likely to see supply bottlenecks. China is the biggest producer of gold followed by Australia, the United States, Russia and South Africa. The demand in China matches its supply from domestic production while Australia and South Africa is seeing lower outputs.