 "gold")
By Brijesh Patel
(Reuters) - 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 Securities. [MKTS/GLOB]
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"Wherever there had been a period of false hopes such as the Federal Reserve slowing, those expectations appear to be immediately evaporating."
The dollar rose to a more than one-month high against its rivals, making gold more expensive for buyers holding other currencies. [USD/]
Benchmark 10-year Treasury yields rose to their highest in a month, increasing the opportunity cost of holding non-yielding gold. [US/]
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 bullion.
Speculators cut their net long COMEX gold position in the week to Aug. 16, data showed on Friday. [CFTC/]
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)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
