Gold fell on Monday as investors cashed in gains after upbeat Asian demand earlier lifted the metal to two-week highs, with expectations for a rise in U.S. interest rates later this year keeping a lid on prices.
Spot gold was at $1,208 an ounce, down 0.4 percent from late on Friday. U.S. gold futures for April delivery were down $5 an ounce at $1,209. Earlier spot prices rose to $1,223.20 an ounce, their highest since Feb. 17, after an interest rate cut in Beijing lifted demand in China, the world’s second largest gold market.
“The higher levels we saw were a good opportunity for some of the bears in the market, who are focusing on the fact that the Fed looks to be on course to raise rates, to take some profits,” Societe Generale anlayst Robin Bhar said.
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