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  1. Gold price falls to one-month low as dollar strengthens

Gold price falls to one-month low as dollar strengthens

Gold price dropped to its weakest in a month on Monday, pressured by a firmer dollar following hawkish comments from US Federal Reserve officials that suggested at least two interest rate hikes this year, with the first potentially coming next month.

By: | Manila | Published: March 28, 2016 8:34 AM
gold price, bullion market Spot gold was down 0.5 percent at ,210.50 an ounce by 0058 GMT, just off a session-low of ,209.26. That was the weakest level for cash bullion since Feb. 23.(Reuters)

Gold price  dropped to its weakest in a month on Monday, pressured by a firmer dollar following hawkish comments from US Federal Reserve officials that suggested at least two interest rate hikes this year, with the first potentially coming next month.

Spot gold was down 0.5 percent at $1,210.50 an ounce by 0058 GMT, just off a session-low of $1,209.26. That was the weakest level for cash bullion since Feb. 23.

US gold for April delivery slipped 0.9 percent to $1,210.90 an ounce.

St. Louis Fed President James Bullard told reporters on Thursday that he was undecided on whether to push for an interest rate rise at a policy meeting next month in part because the US central bank will have seen little more economic data in the interim.

But Bullard told the Japanese business daily Nikkei that the Fed may raise interest rates in April or June.

Russia and Kazakhstan extended their gold buying spree in February by adding to their bullion reserves, while Malaysia and Turkey cut their bullion holdings, data from the International Monetary Fund showed on Friday.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose to 26.48 million ounces on Thursday, the highest since December 2013.

The dollar nudged up against the euro and yen after rebounding last week following the comments from Fed officials.

Asian stocks edged higher after fairly strong consumer spending led to an upward revision in US economic growth in the fourth quarter, helping to underpin investor sentiment.

DATA AHEAD (GMT) 1230 US Trade balance Feb 1230 US Personal income Feb 1400 US Pending home sales Feb 1430 US Dallas Fed manufacturing index Mar

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