Gold pulls back from 5-month peak on dollar strength

0
21

One kilogram gold bars are displayed for a photograph at the YLG Bullion International headquarters in Thailand on January 13, 2016.

Dario Pignatelli | Bloomberg | Getty Images

Gold prices eased on Monday, pulling back from a more than five-month peak hit in the last session, as a firm dollar dimmed its appeal.

Fundamentals

Spot gold fell 0.3% to $1,857.96 per ounce by 0154 GMT, while U.S. gold futures dropped 0.4% to $1,860.50 per ounce.

The dollar index hovered close to a 16-month high, pressuring bullion by increasing its cost to buyers holding other currencies.

Minneapolis Federal Reserve Bank President Neel Kashkari said on Sunday he expects higher inflation continuing over the next few months but warned that the U.S. central bank should not overreact to elevated inflation as it is likely to be temporary.

Euro zone inflation may fall more slowly than earlier thought, partly on persistent supply chain bottlenecks, but the European Central Bank (ECB)…

Read more…