Gold extends losses for 6th session in a row hitting 7-month low

Gold continued its losses today, Monday, for the sixth session in a row, reaching its lowest level in about seven months, in light of the continued rise of the dollar, traders’ evaluation of a major report on inflation in the United States, and their anticipation of a number of labor market data scheduled to be issued this week.

According to Reuters, gold fell in spot transactions by 0.4% to $1,840.49 per ounce by 0545 GMT, its lowest level since March 10. US gold futures fell 0.5 percent to $1,856.20.

Last week, the precious metal recorded the largest weekly decline since June 2021, ending the third quarter with a decline of 3.7%.

The dollar stabilized near the highest level in ten months, while Treasury bond yields fell from the highest level in 16 years.

Data on Friday showed that core inflation in the United States declined in August and the average core personal consumption expenditures price index, a measure of inflation closely monitored by the Federal Reserve, approached the target rate of two percent over the past three months. .

New York Federal Reserve Bank President John Williams said that the central bank may stop raising interest rates with the decline in inflation pressures, which, although still high, are falling towards the official target.

High interest rates increase the opportunity cost of owning bullion, which is priced in dollars and does not generate returns.

As for other precious metals, silver fell in spot transactions 2.1 percent to the lowest level in more than six months at $21.69 per ounce, while platinum fell 0.4 percent to $900.71 and palladium fell 1.1 percent to $1,232.11.