- Posted on January 06, 2025
- News
- By FC Team
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Investing.com-- Gold prices fell slightly in Asian trade on Monday, coming under pressure from a stronger dollar as expectations of a slower pace of monetary easing kept traders largely biased towards the greenback. The yellow metal has been steadily losing ground since late-December, after the Federal Reserve warned that it will cut interest rates at a slower pace in 2025. The dollar’s recent rally was sparked largely by this notion.Hawkish comments from some Fed officials over the weekend also pressured gold.Spot gold fell 0.1% to $2,635.81 an ounce, while gold futures expiring in February fell 0.3% to $2,646.51 an ounce by 00:12 ET (05:12 GMT). Hawkish Fedspeak dents gold, boosts dollarLosses in gold and strength in the dollar came after two Fed officials warned that the bank’s fight against inflation was not over, potentially heralding a more hawkish outlook for interest rates. Governor Adriana Kugler and San Francisco Fed President Mary Daly both said that the central bank was still not declaring victory over inflation, and was closely watching the labor market for any signs of weakness.Sticky inflation and a strong labor market give the Fed less impetus to cut interest rates. Focus this week is on upcoming nonfarm payrolls data for more cues on interest rates. Other precious metals also retreated on Monday. Platinum futures fell 0.4% to $942.0 an ounce, while silver futures fell slightly to $30.055 an ounce. Among industrial metals, March copper futures fell 0.3% to $4.0655 a pound. The red metal was pressured by uncertainty over more stimulus measures in China, with focus turning to upcoming inflation data this week for more cues on the world’s biggest copper importer.