Gold prices decline for a sixth straight day, hits seven-month lGold fell for a sixth straight day to the lowest in almost seven months, as the metal continued to test lower levels following hawkish signaling by the US Federal Reserve (Fed).
Treasury yields climbed on Monday after a US government shutdown was averted over the weekend, pushing gold down to the lowest since March.
The metal fell 4 per cent last week as a drop below $1,900 an ounce triggered outflows from exchange-traded funds, while hedge funds trading Comex futures cut bullish gold bets to a five-week low.
The fall was triggered by Fed policymakers indicating monetary policy would remain tight for a long period. Non-interest bearing gold is now in a vulnerable position as it comes under pressure from a surge in bond yields from the US to Germany and Japan, which could lead to more investor selling.
Later Monday, traders will look to US purchasing managers indices and an inflation gauge released by the Institute for Supply Management. At the end of the week, the headline jobs report will be eyed for its possible influence on the path of monetary policy.
Spot gold dipped 0.8 per cent to $1,833.25 an ounce as of 10:49 a.m. in London. The Bloomberg Dollar Spot Index climbed 0.2 per cent. Silver, palladium and platinum all fell.
