Picture used for illustrative. File

Gulf Today Report 

Gold prices dropped on Monday as investors go for other safe-haven assets following Turkey’s abrupt decision to replace its central bank head.

Spot gold was down 0.5% at $1,736.71 per ounce by 06:00 GMT while US gold futures were down 0.2% at $1,738.80 per ounce.

The replacement of the Turkish central bank chief has left investors worried about the impact the decision would have on other financial markets, thereby shifting their support to the dollar as a safe-haven. 

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"This morning when the Turkish Lira fell out of bid, we might have seen gold benefiting with the dollar and Japanese yen but that's clearly not the case," said Michael McCarthy, chief market strategist at CMC Markets.

Gold may retest a support at $1,716 per ounce, a break below could cause a fall into the range of $1,669 to $1,691, according to technical analyst Wang Tao.