Gold drops to one-week low

Gold prices slipped to a one-week low on Monday after a robust US jobs data last week and remarks from Federal Reserve Chair Jerome Powell dented hopes for early rate cuts, lifting the dollar and bond yields higher, reports Reuters.
Spot gold was down 0.6 per cent at $2,025.99 per ounce by 1214 GMT, hitting its lowest since January 29. US gold futures fell 0.6 per cent to $2,042.60 per ounce.
"The markets are having another rain check with the combination of the FOMC meeting, the strong jobs report, followed up by Powell's interview showing doubts on the prospect for the Fed's timing of the incoming rate cuts," said Ole Hansen, Saxo Bank's head of commodity strategy in a note.
"If we do see any weakness in incoming data because the Fed is most certainly very data driven right now, that will dictate the direction for gold."
The dollar index hit a nearly three month high, making bullion more expensive for other currency holders, while yields on benchmark 10-year Treasury notes rose to more than 4 per cent.
Data from the US Labor Department showed on Friday that non-farm payrolls increased by 353,000 jobs in January, almost double the 180,000 forecast by economists polled by Reuters.
The Fed can be "prudent" in deciding when to cut its benchmark interest rate, with a strong economy allowing central bankers time to build confidence that inflation will fall further, Powell said in an interview.
According to the CME Fed Watch Tool, traders now expect about a 65 per cent chance of a US rate cut in May. Lower interest rates boost non-yielding bullion's appeal.
Investors focus now shifts to remarks from a host of Fed speakers this week for further clues on rate cuts.
Spot silver fell 0.9 per cent to $22.46 per ounce, palladium lost 1.6 per cent to $930.83, while platinum rose 0.8 per cent to $897.45.