Following the recent trend to hall gold as a major means of exchange to dollar, recently reported from changes in the market, Gold hovered near a two-month low on Monday, after strong U.S.economic data sparked concern over further increases to interest rates by the Federal Reserve, clouding the outlook for zero-yielding bullion.
was nearly unchanged at $1,811.70 per ounce. U.S. gold futures
was up just 0.1% at $1,819.10.
“Given how the Fed’s favoured measure of inflation accelerated in January, appetite for zero-yielding gold may be soured by rate-hike bets in the near term – ultimately dragging prices lower,” said Lukman Otunuga, senior research analyst at FXTM.
“Gold (will) remain highly sensitive to chatter by Fed officials, key economic data and any topic relating to inflation as we head into the new month.”
Data on Friday showed U.S. consumer spending increased by the most in nearly two years in January, while inflation accelerated, adding to market fears that the Fed could continue raising interest rates into summer.
Gold prices hit their highest since April 2022 this month, but have since fallen by more than 7% after a slew of U.S. data pointed to a resilient economy.
Top consumer China’s net gold imports via Hong Kong fell in January by about 47% from the previous month.