Price of gold declined due to the rise in dollar and concerns about increasing interest rates

Gold prices fell on Monday as the dollar rose, with the release of a new set of data that reinforced fears that central banks around the world will continue to raise interest rates to contain inflation. GMT, after rising to its highest level since February 15 on Friday.

US gold futures rose 0.3 percent to $1,859.60.

The dollar index rose, making gold less expensive for buyers holding other currencies.

Data on Friday showed the US services sector grew at a steady rate in February, with new orders and employment rising to more than one-year highs, indicating the economy continued to expand in the first quarter.

San Francisco Fed President Mary Daley said on Saturday that if data on inflation and the labor market continues to rise more than expected, it is imperative to raise interest rates and hold them at that level for longer than Fed policymakers expected in December.

European Central Bank President Christine Lagarde said core inflation in the eurozone will remain high in the near term and therefore a 50 basis point rate hike by the European Central Bank later this month is increasingly certain.

Although gold is considered a hedge against inflation, the rise in interest rates to reduce price pressures increases the opportunity cost of holding non-returnable gold.

The spot silver price fell 0.2 percent to $21.20 an ounce, the platinum price fell 0.7 percent to $970.84, and the palladium price fell 0.6 percent to $1443.65.