Gold prices fell slightly on Monday, increasing losses from the previous session as the dollar solidified after data showed a further surge in inflation fuel bets against the tightening of the previous Federal Reserve.
Spot Gold fell 0.1% to $ 1,781.78 an ounce by 0044 GMT after falling to a week-long low on Friday. US gold futures fell 0.1% to $ 1,782.80. US dollar remained close to its highest level since Friday, October 13, making gold less attractive to buyers holding other currencies.
According to data released Friday, the jury said the current price surge was temporary and should weaken over time as the consumer price index surged inflation last month.
The Federal Reserve Board’s two-day monetary policy meeting ends Wednesday.
Traditionally, gold is used as protection against inflation.
However, lower incentives and rate hikes to counter inflationary pressures tend to increase government bond yields and increase interest-free gold opportunity costs.
The US Treasury Secretary Janet Yellen said on Friday that he believes inflation remains a temporary result of a serious supply chain bottleneck and expects inflation to normalize in 2022.
The eurozone economy was booming in the summer. According to a survey by the European Central Bank (ECB) on Friday, growth is expected to grow by 4.5% in 2022, but inflation is also higher than expected and the ECB is increasing the headache of monetary policy.