Gold hits its lowest level in two months, with interest growing after US data

Gold prices fell to the lowest level in two months on Monday, after strong US economic data fueled fears that the Federal Reserve (the US central bank) will take more measures to raise interest rates to curb inflation.

Spot gold fell 0.1 percent to $1,808.51 an ounce by 0541 GMT. US gold futures fell to $1,815 an ounce.

Friday’s data showed a significant 1.8% rise in US consumer spending last month, the largest increase since March 2021, while the personal consumption expenditures price index, the Fed’s favorite measure of inflation, increased 0.6% after increasing 0.2% in December. December.

Gold is considered a hedge against inflation, but raising interest rates reduces its attractiveness to buyers, as it raises the opportunity cost of possessing the precious metal, which does not yield a return.

Silver in the spot market fell 0.9 percent to $20.58 an ounce, platinum fell 0.3 percent to $906.94, while palladium rose 0.9 percent to $1415.96 an ounce.