Gold prices witnessed on Monday, a decline of more than 1% to its lowest level since late January, with the continued impact of the strength of the dollar on demand for the yellow metal, which is denominated in the US currency.
According to Arab Net, spot gold fell 0.8% to $1,797.82 per ounce, while US gold futures fell 0.6% to $1,797.40 per ounce, according to Reuters.
Earlier in the session, gold prices fell 1.4% to the lowest level since January 31, recording $1,786.60 an ounce.
On Friday, the yellow metal witnessed a weekly loss for the fourth consecutive week.
The US dollar consolidated gains near a two-decade peak as weak data on the Chinese economy hurt cyclical currencies, including the British pound and the Australian dollar, reducing the attractiveness of gold as a safe haven for holders of other currencies.
The US central bank raised interest rates for the first time in the pandemic period in March by 25 basis points as it sought to tighten monetary policy.
Although gold is considered a haven from inflation, it is sensitive to increased US interest rates in the short term and to increased bond yields as both factors increase the opportunity cost of holding gold.
As for other precious metals, silver fell 0.2% to $21.02 an ounce, while platinum fell 0.5% to $934.16 an ounce, while palladium fell 1.3% to $1,918.59 an ounce.
