Gold fell more than 1% on Monday, pressured by a stronger dollar \u200band expectations of higher interest rates as the Middle East conflict \u200cfuelled inflation concerns.<\/p>\n
Spot gold was down 1.5% at $5,091.62 per ounce. U.S. gold futures for April delivery settled 1.1% lower at $5,103.70.<\/p>\n
Inflation worries and expectations of higher \u200binterest rates driven by uncertainty over the war weighed on gold, but \u200ba prolonged conflict is also expected to sustain safe-haven demand \u2060and provide a floor for gold prices, said Jim Wyckoff, senior analyst at \u200bKitco Metals.<\/p>\n
Gold is seen as an inflation hedge, but low rates boost its \u200bappeal as a zero-yield asset.<\/p>\n
The U.S. dollar firmed as soaring oil prices neared $120 a barrel, sending investors scrambling for cash on fears that a protracted Middle East war could severely disrupt energy \u200bsupplies and hurt global growth. A stronger dollar makes greenback-priced bullion more \u200bexpensive for other currency holders.<\/p>\n
Israel\u2019s military said it had launched attacks in central Iran and struck \u200cthe \u2060Lebanese capital Beirut. The war has effectively shut the Strait of Hormuz, where a fifth of global oil and seaborne liquefied gas is shipped near Iran\u2019s coast.<\/p>\n
On the data front, the U.S. consumer price index for February is due on \u200bWednesday, while the Federal \u200bReserve\u2019s preferred inflation \u2060gauge, the Personal Consumption Expenditures (PCE) index, will be released on Friday.<\/p>\n
\u201cIf we get some hot inflationary numbers this week, \u200bthen that\u2019s really going to put the Federal Reserve into \u200bkind of \u2060a quandary. It could see a further drop in gold prices,\u201d Wyckoff said.<\/p>\n
The U.S. central bank\u2019s next policy meeting is on March 17\u201318, where it is widely \u2060expected to \u200bhold interest rates steady.<\/p>\n
Among other metals, spot silver \u200bwas down 0.2% at $84.18 per ounce, platinum gained 1.1% to $2,158.02 and palladium rose 2.4% to $1,663.79.<\/p>\n","protected":false},"excerpt":{"rendered":"
Gold fell more than 1% on Monday, pressured by a stronger dollar \u200band expectations of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1026","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"\n