© Reuters. Gold bars at a factory in Mendrisio, Switzerland, on July 13, 2022. Photo: Dennis Balibus / Reuters.
(Reuters) – It fell on Monday as investors prepared for January consumer price index data in the United States that could move the Federal Reserve’s (US central bank) interest rate strategy.
It fell 0.5 percent to $1,854.79 an ounce by 1842 GMT, while US gold futures fell 0.6 percent, to settle at $1,863.50.
Gold is considered a hedge against inflation, but the cost of holding it rises when interest rates are raised to curb inflation.
All eyes are on the US Consumer Price Index data due out on Tuesday, which is expected to have risen 0.4% in January.
It fell 0.3 percent, while the benchmark yield for ten years fell after hitting its highest level since early January during the session, which relieved pressure on gold prices.
As for other precious metals, it decreased in spot transactions by 0.4 percent to $ 21.91 an ounce, and platinum rose 1 percent to $ 954.32.
It rose 1.8% to $1,569.53, after falling close to a three-year low earlier in the session.
(Prepared by Mahmoud Abdel Gawad and Doaa Mohamed for the Arabic Bulletin)
