Gold prices inch down on steady dollar

Gold prices edged lower early on Monday as the dollar strengthened after hawkish comments from Federal Reserve Chair Janet Yellen left the door open for a US interest hike as early as next month.
Spot gold had dipped 0.33 per cent to $1,316.46 per ounce at 0120 GMT. The metal closed last week down 1.5 per cent.
US gold futures fell 0.48 per cent to $1,319.60.
The case for raising US interest rates has strengthened in recent months because of improvements in the labour market and expectations for moderate economic growth, Fed Chair Janet Yellen said on Friday.
Gold is highly-sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.
The dollar stood tall in Asian trading on Monday, after Yellen's upbeat comments on the US economy.
The dollar index, which tracks the greenback against a basket of six rivals, was steady at 95.551, not far from Friday's high of 95.594, its loftiest level since Aug. 16, according to Reuters.
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Source: The Financial Express


 

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