Gold prices declined on Monday, as hopes of a March interest rate cut by the Federal Reserve faded, while traders awaited key US economic data and major central bank policy meetings this week, reports Reuters.
Spot gold was down 0.2 per cent at $2,026.40 per ounce, as of 1237 GMT. US gold futures were steady at $2,029.00.
"At the moment, we have this asymmetry between what central banks are saying and what the market was pricing," said Carlo Alberto De Casa, market analyst at Kinesis Money.
"The market is now repricing, and is changing this view and realizing that there was too much optimism about the central bank's (rate cut) decisions."
The US dollar index, opens new tab fell around 0.1 per cent, while yields on benchmark U.S. 10-year Treasury notes slipped from a more than a month high.
Bullion fell about 1 per cent last week - its biggest weekly decline in six - after Fed officials said they need more inflation data in hand before any rate cut judgment could be made and that the baseline for cuts to start was in the third quarter.
Traders now price in about a 48 per cent chance that the Fed will cut interest rates in March, according to the CME Fed Watch Tool.
Spot silver fell 1.8 per cent to $22.19 per ounce, platinum lost 0.3 per cent to $896.2, and palladium slipped 2.9 per cent to $919.25.
"We think platinum will again become moderately more expensive than palladium," UBS said in a note.
Gold drops as US rate-cut hopes fade
FE Team | Published: January 22, 2024 22:01:51
Gold drops as US rate-cut hopes fade
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