NEW YORK/LONDON (Reuters) – Gold fell on Monday after strong U.S. economic data boosted investor risk sentiment and a top U.S. Federal Reserve official said an interest rate hike is likely to take place ahead of the market’s current expectations due to fading economic concerns.
Spot gold (XAU=) eased 0.5 percent to $1,216.10 an ounce by 3:01 p.m. EDT (1901 GMT), while U.S. gold for June delivery settled down 0.3 percent at $1,219 an ounce. [Today Is A Great Day To Purchase Gold – Buy Low Sell High]
Spot prices saw their biggest quarterly rise in nearly 30 years in the three months to March, rallying on speculation the Fed was not in a hurry to normalize interest rates, but drifted back towards the key $1,200 level after hawkish comments from several Fed officials.
The U.S. central bank raised rates in December for the first time in nearly a decade. READ MORE
By Marcy N and Clara D