Gold prices fell for a sixth straight
session on Monday to hit their lowest in more than three weeks,
weighed down by a robust dollar amid expectations of more rate
hikes from the U.S. Federal Reserve to tame surging inflation.
Spot gold was down 0.4% at $1,741.79 per ounce, as of
0700 GMT, its lowest since July 28.
U.S. gold futures fell 0.4% to $1,755.80 per ounce.
“The upward resumption in the U.S. dollar will of course be
weighing on the gold market, but it seems to be more aligned
with the simultaneous sell-off seen across bonds, stocks and
currencies,” said Clifford Bennett, chief economist at ACY
“Wherever there had been a period of false hopes such as the
Federal Reserve slowing, those expectations appear to be
The dollar rose to a more than one-month high against
its rivals, making gold more expensive for buyers holding other
Benchmark 10-year Treasury yields rose to their
highest in a month, increasing the opportunity cost of holding
The Fed will likely raise rates by 50 basis points in
September amid expectations inflation has peaked and growing
recession worries, according to economists in a Reuters poll.
Traders are now pricing in around a 46.5% chance of a
75-basis-point rate hike in September and a 53.5% chance of a
50-bp increase after recent hawkish remarks from Fed officials.
Focus this week will be on comments by Fed Chair Jerome
Powell when he addresses the annual global central banking
conference in Jackson Hole, Wyoming, on Friday.
Gold is highly sensitive to rising U.S. interest rates, as
these increase the opportunity cost of holding non-yielding
Speculators cut their net long COMEX gold position in the
week to Aug. 16, data showed on Friday.
Elsewhere, spot silver eased 0.2% to $18.98 per
ounce, platinum fell 1.1% to $886.01, while palladium
rose 0.5% to $2,135.27.
(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu
Sahu and Rashmi Aich)