Gold prices fall on Monday

Gold prices fell on Monday amid thin trading volumes as US and Chinese markets remained closed for public holidays, while investors locked in profits following the previous session’s 2.5 per cent surge.

Spot gold declined 0.9 per cent to $4,997.59 per ounce by 0726 GMT after dropping more than 1 per cent earlier, while US gold futures for April delivery eased 0.6 per cent to $5,017.20 per ounce.

Analysts attributed the pullback to profit-taking and the absence of fresh catalysts after gains driven by softer-than-expected US consumer price data. US consumer price inflation rose 0.2 per cent in January, below forecasts of 0.3 per cent.

Market participants expect the Federal Reserve to keep interest rates unchanged at its March 18 meeting. However, they continue to price in 75 basis points of rate cuts this year, with the first anticipated in July. Non-yielding bullion typically benefits from a lower interest-rate environment.

In other precious metals, spot silver fell 0.8 per cent to $76.82 per ounce, platinum slipped 0.7 per cent to $2,048.15, while palladium held steady at $1,685.64.

Attribution: Reuters