Gold eased on Monday, extending last week's slide, as indications that the Federal Reserve may still raise interest rates this year despite recent market turmoil offset a retreat in the dollar.

Spot gold was down 0.2 per cent at $1,131.03 an ounce, while US gold futures for December delivery were down $3.30 at $1,130.70.

Spot silver was at $14.50 an ounce, while platinum was down 1.5 per cent at $1,000.74 and palladium was at $589.

Oil fell below $49 a barrel on Monday after its biggest two-day rally in six years last week, pressured by a supply glut and renewed concern about a hard landing for China's economy.

International benchmark Brent crude climbed 10 per cent last week but was still heading for its fourth straight monthly decline and has risen in only two of the past 14 months.

Brent was at $48.63 a barrel and US crude, which had rallied 12 per cent last week, dropped to $44.

“Volatility was high last week, so now we're seeing some retracement - $50 is proving to be a resistance level,” said Olivier Jakob, analyst at Petromatrix, referring to Brent.

“It is still a market which is very well supplied.” Excess supply is weighing on oil. The Organisation of the Petroleum Exporting Countries, which used to adjust its own supply to keep crude above $100, decided in 2014 to let prices fall in order to retain market share.

OPEC's forecasts point to an oversupply of more than 2 million barrels per day (bpd) on the market because of higher output from members including Saudi Arabia and Iraq, and resilient supply from countries outside the group.

Bullion prices (in ₹)

Mumbai: Silver spot 35,435/kg; standard gold 26,505/10 gm; pure gold 26,655/10 gm.(Rates included VAT)

Chennai: Bar silver 34,820/kg; standard gold 26,880/10 gm; retail silver 37.30/gm; 22 carat retail ornament gold 2,513/gm.

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