Gold Slips to 3-Week Low

Gold hit a three-week low as expectations for a US interest rate hike this month weighed, but moves were muted as markets awaited US data this week and more pointers on the (President Donald) Trump administration’s economic plans.

The precious metal has fallen in five out of the last six sessions as expectations for the Federal Reserve to push ahead with a US rate increase this month ramped up, Reuters reported.

Spot gold was down 0.2% at $1,223.59 an ounce, having earlier touched its lowest since Feb. 15 at $1,222.29 an ounce. US gold futures for April delivery were down $1.90 an ounce at $1,223.60. The metal slipped last week after comments from US Federal Reserve Chair Janet Yellen that the Fed was poised to lift benchmark US rates were seen as cementing plans for an increase at the Fed’s March 14-15 meeting.

Gold is highly sensitive to rising US interest rates, as it increases the opportunity cost of holding non-yielding bullion, while boosting the dollar in which it is priced.

Holdings of the world’s largest gold ETF, New York-listed SPDR Gold Shares, fell another 3.8 tons on Monday, adding to the previous session’s 4.7-ton decline. On the wider markets, the dollar edged up against a basket of currencies.

Silver was down 0.6% at $17.67 an ounce. Platinum was down 0.4% at $971.25, after earlier hitting $965.90, its lowest since Jan. 27, while palladium was 0.1% higher at $771.75.