Gold prices fell to a three-week low on Monday as the dollar held on to last week's gains and Treasury yields remained elevated on fading hopes of an early Federal Reserve rate cut, with markets looking ahead to US inflation data this week, reports Reuters.
Spot gold was down 1.2 per cent at $2,020.69 per ounce, near its lowest level since Dec. 18. US gold futures fell 1.1 per cent to $2,026.80.
Ahead of the US consumer price inflation report on Thursday, the market sees about a 69 per cent chance of a Fed rate cut in March, according to the CME FedWatch tool.
The dollar index, which measures the greenback against a basket of other major currencies, was steady after posting its best week since July 2023, with data on Friday showing firms in the U.S. employed more people than expected in December.
Spot silver was down 1.1 per cent at $22.90 per ounce while platinum fell 1.4 per cent to $947.10. Palladium lost 2.3 per cent to $1,003.32, down for a tenth session.
Gold drops to 3-week low as Fed rate cut hopes fade
FE Team | Published: January 09, 2024 00:49:13
Gold drops to 3-week low as Fed rate cut hopes fade
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