Gold prices fall

BENGALURU. — Gold prices fell yesterday amid a rise in the dollar as investors awaited more clues on the timing of any US interest rate increases in a series of speeches by Federal Reserve officials this week.

Spot gold fell 0,5 percent to $1 232,31 per ounce by 3.38am GMT, while US gold futures also fell 0,4 percent to $1 233,60 per ounce. The dollar index rose 0,3 percent to 101.22.

“US economic data is currently the driving force behind gold,” Heraeus Metal Management said in a note.

“Fed chief Janet Yellen recently signalled that the US economy was prepared for an early increase in key interest rates. Economic data confirming this assessment will put a strain on the gold price in the coming weeks and months,” Heraeus said.

The heads of five regional US Federal Reserve branches are scheduled to speak this week. In addition, Fed board governor Jerome Powell will speak today, when minutes of the last policy meeting are also due.

Cleveland Fed president Loretta Mester said on Monday she would be comfortable raising interest rates at this point if the economy kept performing the way it did.

Spot gold could break a support at $1 233 per ounce and head towards the support at $1 226, said Reuters technical analyst Wang Tao.

Bullion is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding nonyielding bullion, while also boosting the dollar.