LONDON: Gold fell on Monday, extending losses for a third day as the dollar arrested three weeks of falls, but the metal was underpinned by expectations that the ultra-low interest rate environment will persist.
Spot gold was down 0.7pc at $1,246.32 an ounce at 1437 GMT, while US gold futures for April delivery were down $7.20 an ounce at $1,247.10.
The metal has risen 17pc this year as expectations for fresh rate hikes faded. It rallied on Wednesday after the Fed statement, but failed to revisit the previous week’s 13-month high.
Market indicators are signalling that investors see stronger risks of inflation, which has been almost non-existent since the credit crisis. US Treasury yields rose after two Federal Reserve officials gave bullish projections on inflation. Silver was up 0.2pc at $15.81 an ounce, while platinum was up 1.2pc at $978.70 an ounce and palladium was up 1pc at $595.
Courtesy : Dawn News