Gold prices slipped on Monday, weighed
down by a rebound in the U.S. dollar and expectations of further
interest rate hikes from the Federal Reserve to tame high
Spot gold was down 0.4% at $1,794.78 per ounce, as of
0352 GMT, after rising about 1.6% last week. U.S. gold futures
fell 0.3% to $1,810.
The dollar erased earlier losses to gain 0.1% against
its rivals, making gold more expensive for buyers holding other
“Gold looks like in some consolidation here for a week or
two before resuming the upward march towards $2,000 yet again.
There may be even some who will feel the need to take profits to
offset property portfolio weakness,” said Clifford Bennett,
chief economist at ACY Securities.
“Gold is likely to be supported around $1,785. A slip to
$1,760 cannot be ruled out, but this would represent fantastic
long-term buying opportunity.”
Meanwhile, Richmond Fed Bank President Thomas Barkin said on
Friday he wanted to raise interest rates further to bring
inflation under control.
Investors will be watching out for minutes from the Fed’s
last monetary policy meeting due on Wednesday for more clues on
future rate hikes.
Traders were pricing in around a 44.5% chance of a
75-basis-point rate hike by the Fed in September and a 57.5%
chance of 50 bps.
Although gold is seen as a hedge against inflation, rising
U.S. interest rates dull non-yielding bullion’s appeal.
“Gold recorded its fourth consecutive weekly gain amid
easing inflationary pressures. However, those same issues may
ultimately be a negative,” ANZ analysts said in a note.
Indicative of sentiment, holdings of SPDR Gold Trust ,
the world’s largest gold-backed exchange-traded fund, fell 0.15%
to 995.97 tonnes on Friday, their lowest since January.
Elsewhere, spot silver dropped 1% to $20.61 per
ounce, platinum fell 0.9% to $953.67, and palladium
was steady at $2,223.22.
(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu