Gold prices slip more than 2% to a near three-month low; oil falls

Gold prices fell more than 2 per cent to a near three-month low on Monday as increased prospects of faster rate hikes by the Federal Reserve lifted US Treasury yields and the dollar. Spot gold fell 1.7 per cent to $1,863.31 per ounce by 8:13 pm IST, earlier hitting its lowest since Feb. 16 at $1,854.36. US gold futures dropped 2.6 per cent to $1,862.70.

“There is pressure on gold market with the stronger dollar and yields amidst fears that the Fed might be more hawkish,”said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

Oil also declined as China’s measures to curb Covid-19 threatened a further hit to fuel demand. West Texas Intermediate futures trade near $101 on Monday. Brent Crude tarded near $105 a barrel.