Gold retreats from three-month high as dollar rises

Gold prices fell on Monday from a three-month high reached in the previous session as the dollar and US bond yields rose after a senior Federal Reserve official warned that the board was not easing its fight against inflation.

And the price of gold in spot transactions 0.5 percent to $ 1761.86 an ounce as of 0239 GMT, after hitting its highest level since August 18 on Friday.

US gold futures fell 0.3 percent to $1,764.80.

Gold prices recorded their biggest weekly gains since March 2020 last week, after indicators of slowing inflation in the United States raised hopes that the Federal Reserve would be less committed to raising interest rates.

Federal Reserve Chairman Christopher Waller said on Sunday the Fed may consider slowing the pace of interest rate increases at its next meeting but that this should not be interpreted as a “easing” of its fight against inflation.

Friday’s survey showed that US consumer sentiment declined in November, weighed down by persistent concerns about inflation and rising borrowing costs.

Gold is very sensitive to rising US interest rates as this increases the opportunity cost of holding non-yielding gold.

The dollar index rose 0.4 percent after falling to its lowest level in three months on Friday, making gold more expensive for holders of other currencies.

The benchmark 10-year US Treasury yield rose from a one-month low.

As for other precious metals, the price of silver fell 0.8 percent to $21.51 an ounce. The price of platinum fell 0.5 percent to $ 1028.38, and palladium fell 0.9 percent to $ 2021.91.