Gold Falls Amid Fed Hike Fears, Oil-Driven Inflation Concerns
Gold prices continued to trade with a modest downside bias during American trading hours on Monday, despite a softer US Dollar. The Greenback faced selling pressure as broad Japanese Yen strength outweighed support from hawkish Federal Reserve expectations and geopolitical tensions.
The US Dollar Index (DXY) traded around 98.87, down nearly 0.30% on the day, hovering near two-week lows. However, Gold may struggle to attract strong follow-through buying as Fed rate hike concerns dominated sentiment following the blockbuster US employment report.
Higher Oil prices also kept energy-driven inflation risks in focus as tensions between the United States and Iran continued to simmer. The US Producer Price Index (PPI) is due on Thursday, followed by the Consumer Price Index (CPI) on Friday, which could reinforce Fed rate hike expectations or offer Gold some relief.