WASHINGTON (dpa-AFX) - Gold futures settled sharply lower on Monday as the dollar climbed higher and treasury yields rose amid rising prospects of the Federal Reserve announcing a sharp interest rate hike on Wednesday to fight soaring inflation.
The dollar index hit a new high of 105.07 before paring some gains. It was last seen hovering around 104.80, up nearly 0.65% from the previous close.
Gold futures for August ended lower by $43.70 or about 2.3% at $1,831.80 an ounce, the lowest settlement in more than three weeks.
Silver futures for July ended down by $0.676 at $21.255 an ounce, while Copper futures for July settled at $4.2115 per pound, down $0.0830 from the previous close.
Hotter-than-expected inflation data released on Friday hardened expectations the Federal Reserve will keep raising rates through the September meeting and beyond.
Data showed the annual rate of consumer price growth accelerated to 8.6% in May from 8.3% in April, showing the biggest surge since December 1981.
The Bank of England and the Swiss National Bank are also expected to raise interest rates at their meetings this week, but little change is expected from the Bank of Japan.
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