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China's net gold imports via Hong Kong fell 47% in January
*
Dollar hovers near seven-week high
(Adds analyst comment and updates prices)
By Ashitha Shivaprasad
Feb 27 (Reuters) - Gold fell to a two-month low on
Monday as strong U.S. economic data sparked concern over further
increases to interest rates by the Federal Reserve, clouding the
outlook for zero-yielding bullion.
Spot gold was steady at $1,811.60 an ounce by 1236
GMT, having earlier hitting its lowest since late December at
$1,806.50. U.S. gold futures were unchanged at $1,817.20.
"Given how the Fed's favoured measure of inflation
accelerated in January, appetite for zero-yielding gold may be
soured by rate-hike bets in the near term – ultimately dragging
prices lower," said Lukman Otunuga, senior research analyst at
FXTM.
"Gold (will) remain highly sensitive to chatter by Fed
officials, key economic data and any topic relating to inflation
as we head into the new month."
Data on Friday showed U.S. consumer spending increased by
the most in nearly two years in January, while inflation
accelerated, adding to market fears that the Fed could continue
raising interest rates into summer.
Gold prices hit their highest since April 2022 this month,
but have since fallen by more than 7% after a slew of U.S. data
pointed to a resilient economy.
The dollar index slipped 0.1% but was hovering near a
seven-week peak. Top consumer China's net gold imports via Hong Kong fell in
January by about 47% from the previous month.
Spot silver lost 0.1% to $20.74 an ounce.
"Despite potential recessions, silver photovoltaic demand is
expected to reach a record in 2023," Heraeus Precious Metals
analysts said in a note.
"In 2023 silver powder imports into China are set to bounce
higher as manufacturing ramps up. How much this supports the
silver price may depend on how the overall economic environment
develops over the year."
Platinum was up 1.7% at $925.17 and palladium gained 1.9% to $1,430.38.
(Reporting by Ashitha Shivaprasad in Bengaluru
Editing by Kirsten Donovan and David Goodman
)
