Feb 20 (Reuters) - Gold prices fell on Monday, weighed
down by a stronger dollar and after recent U.S. economic data
raised worries that the Federal Reserve could hike interest
rates further.
FUNDAMENTALS
* Spot gold was down 0.2% at $1,837.59 per ounce, as
of 0048 GMT. U.S. gold futures eased 0.1% to $1,847.60.
* The dollar index was up 0.2%, making
greenback-priced bullion less attractive for buyers holding
other currencies.
* Money markets are now expecting the Fed to raise benchmark
rates above 5% by May, with rates to peak at 5.3% in July, after
recent data showed a tight job market, along with high inflation
and consumer prices.
* Gold is considered a hedge against soaring inflation, but
high interest rates increase the opportunity cost of holding
non-yielding bullion.
* Data on Friday showed U.S. import prices dropped for a
seventh straight month in January amid declining costs for
energy products, leading to the smallest annual increase in
imported inflation in two years.
* A sharp retreat in domestic prices boosted retail demand
for physical gold in India last week, prompting dealers to
charge premiums for the first time in more than three months.
* SPDR Gold Trust , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.13% to 919.92
tonnes on Friday from 921.08 tonnes on Thursday.
* Spot silver lost 0.7% to $21.58 per ounce, platinum fell 0.3% to $914.17 and palladium shed 0.6% to
$1,488.61.
* Market activity could be relatively low on Monday due to a
holiday in the United States.
DATA/EVENTS (GMT)
0115 China Loan Prime Rate 1Y, 5Y Feb
1500 EU Consumer Confid. Flash Feb
(Reporting by Kavya Guduru in Bengaluru; Editing by Subhranshu
Sahu)
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