Gold prices fell on Monday, as the dollar
held on to gains following US Federal Reserve Chair Jerome
Powell’s signal that the central bank will raise interest rates
further to tame sky-high inflation.
* Spot gold fell 0.3% to $1,732.17 per ounce, as of
0107 GMT, after falling 1.2% on Friday.
* US gold futures were down 0.3% at $1,745.3.
* The dollar index held close to a two-decade high of
109.29 touched last month, making the bullion expensive for
those holding other currencies.
* Americans are headed for a painful period of slow economic
growth and possibly rising joblessness as the Fed raises
interest rates to fight high inflation, Powell warned on Friday
at the Jackson Hole central banking conference in Wyoming.
* Higher interest rates increase the opportunity cost of
holding a non-yielding bullion, while boosting the dollar.
* Central banks around the world risk losing public trust
and must now act forcefully to combat inflation, even if that
drags their economies into a recession, European Central Bank
board member Isabel Schnabel said on Saturday at the symposium.
* Gold premiums in top consumer China jumped last week to
their highest since October as a fall in global prices
encouraged purchases, while demand cooled in India as buyers
waited for a bigger price drop.
* Speculators cut their net long COMEX gold position by
15,910 contracts to 30,326 in the week to Aug. 23, data from the
US Commodity Futures Trading Commission showed.
* Spot silver fell 1% to $18.69 per ounce, platinum
slipped 1% to $855.27 and palladium was flat at
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(Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi