Gold prices fell slightly on Monday, as the dollar gained traction against major currency rivals, on signs the Federal Reserve is preparing to tighten monetary policy for the first time in six years in 2015.
Fed Chair Janet Yellen indicated on Friday that the U.S. central bank was poised to raise rates this year, with the world’s largest economy set to bounce back from an early-2015 slump. Higher U.S. interest rates increases the opportunity cost of holding non-yielding bullion.
Spot gold was down 0.2 percent at $1,203.46 an ounce by 1127 GMT, just above a near-two-week low of $1,201.20 hit in the previous session. It posted its biggest weekly drop in a month last week, down 1.4 percent.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.