Gold prices fell on Monday as the US dollar rose, although investors are largely betting that the US Federal Reserve will soon hit the brakes on raising interest rates.
Spot gold fell 0.1% to $1,952.74 an ounce, down about $11 from Friday’s three-month high. US gold futures fell 0.4% to 1,957.60 dollars.
Last week, there were indications of an inflationary trend in US data, as consumer prices experienced their slowest growth in over two years.
The US Central Bank and the European Central Bank are expected to stop next week, and the markets see the US Central Bank as likely to stop before next year’s cuts, while in Europe another increase is expected.
China’s economy, the top consumer of gold, grew at a subdued pace in the second quarter, up 0.8% compared to an expansion of 2.2% in the first quarter, as markets expect the authorities to launch more stimulus to support growth.
