Gold prices declined in European trade on Monday, ending a two-day rise and retreating from two-week highs due to profit-taking and hawkish comments from several Federal Reserve officials, which reduced the likelihood of rate cuts.
Traders are avoiding new positions ahead of key US consumer price data, which is expected to offer significant insights into future monetary policy directions.
Gold is also under pressure from reduced demand in India, the world's second-largest consumer, due to record high local prices.
Prices:
Gold prices dropped 0.8% on Monday to $2,341 an ounce, after reaching a session-high of $2,364.
On Friday, gold prices increased by 0.55%, marking a two-week high at $2,378, and recorded a 2.5% gain for the week, the first weekly increase in three weeks, following weak US labor data.
Aggressive Remarks:
Fed Dallas President Lorry Logan stated that it is uncertain whether current monetary policies are stringent enough to achieve the 2% inflation target in the medium term, and indicated it is too early to consider cutting interest rates.
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