© Reuters. Gold bars at a facility in West Point, New York, USA. Photo from Reuters archive.
(Reuters) – It rose on Monday as the dollar’s gains declined, yet the precious metal remained near its lowest level in two months, amid continuing concerns that the Federal Reserve (the US central bank) would raise interest rates further.
Prices rose 0.5 percent to $1,818.89 an ounce by 1508 GMT. US gold futures rose 0.5 percent to $1,825.70.
It fell 0.4% after hitting a seven-week peak, making the precious metal less expensive for buyers holding other currencies.
Gold prices recorded their highest levels since April 2022 this month, but have since fallen more than seven percent after consecutive US data indicating the strength of the economy.
Data on Friday showed that consumer spending in the United States recorded its biggest rise in nearly two years in January while inflation accelerated, adding to market fears that the Federal Reserve will continue to raise interest rates in the summer.
Higher interest rates would reduce the attractiveness of gold because it increases the cost of the alternative means of hedging through the acquisition of non-returnable assets.
As for other precious metals, it settled in spot trading at $20.77 an ounce. Platinum rose 3.7% to $942.81, and increased 3.7% to $1,455.76.
(Prepared by Amira Zahran for the Arabic Bulletin – Edited by Duaa Muhammad)