Prices of US gold futures declined in trading on Monday, hitting a two weeks as upbeat comments from Fed officials on the US economy have increased on expectations that the central bank may raise interest rates sooner or later.
Gold for December delivery on the Comex division of the New York dropped to a session low of $1,335.40 a troy ounce.
Spot gold was down 0.5 percent at $1,333.50 an ounce.
The odds of a rate hike in the short term after assembled the Fed Vice Chairman Stanley Fischer said Sunday that the US economy is very far from the central bank’s objectives for full employment and 2% inflation.
The speech by Fischer was only the last piece of hard-line rhetoric of the main Fed officials. Last week, San Francisco Fed President John Williams, president of the New York Fed, William Dudley, president of the and Atlanta Fed, Dennis Lockhart, all said a rate hike September may be on the table.
According to the Monitor tool Investing.com entry level, investors are pricing a 15% chance of a rate hike in September, compared with only 6% at the beginning of last week. December odds were around 52%, compared with 46% on Friday.
The largest exchange-traded fund backed by gold in the world (ETF), SPDR Gold Shares listed in New York, reported an output of 4.5 tons last week, adding to drop 20 tons near their shares in the previous week, background data showed.
In Delhi market, Gold also drifted lower by Rs 200 to trade at one-week low of Rs 31,050 per ten grams.
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