Gold Drops a Few
LONDON: Gold fell on Monday after strong US economic data boosted investor risk sentiment, while uncertainty continued about the Federal Reserve’s interest rates path.
Spot gold eased 0.2 per cent to $1,220.86 an ounce by 1333 GMT, while US gold for June delivery slipped $1.40 to $1,222 an ounce. Spot prices saw their biggest quarterly rise in nearly 30 years in the three months to March, rallying more than 16pc on speculation the Fed was not in a hurry to normalize interest rates, but drifted back towards the key $1,200 level after hawkish comments from several Fed officials. The metal is highly exposed to rising rates, which lift the opportunity cost of holding non-yielding assets, while boosting the dollar.
Assets in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.15pc to 818.09 tonnes on Friday, but remain near the highest in over two years.
Silver gained 0.1pc to $15.04, platinum slipped 0.2pc to $952.25 and palladium fell 1.3pc to $560.75.
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