Gold prices fell on Monday and headed for their biggest monthly drop since June 2021 on expectations of an imminent rate hike by the Federal Reserve, signaling a decline in the unyielding precious metal’s appeal.
Spot gold was down 0.3% at $1,811.74 an ounce by 07:35 GMT, after hitting its lowest level in two months on the 27th.
U.S. gold futures fell 0.4% to $1,817.30 an ounce. Gold is seen as a hedge against inflation, but raising interest rates to curb inflation will increase the opportunity cost of holding gold.
Gold prices have fallen nearly 6% so far in February, a sharp fall from earlier in the month, the highest level since April 2022.
The market expects the Fed’s target interest rate to peak in September this year and reach 5.415%.
Spot silver fell 0.2% to $20.58 an ounce and was on track for its biggest monthly drop since September 2020.
Platinum rose 0.1% to $939.33 an ounce and palladium rose 0.2% to $1,432.84 an ounce, with both precious metals expected to post monthly losses.
rising oil prize
Oil prices rose in Asian trading on Monday, underpinned by hopes of rising fuel demand from a strong recovery in China, which even eased concerns that rising U.S. interest rates would have a negative impact on consumption in the largest economy.
Brent crude futures for April, which expire on the 28th, rose – 39 cents to $82.84 a barrel by 07:18 GMT on the 28th, while the most active May contract was up 63 cents. cents at $82.67 a barrel.
Elsewhere, West Texas Intermediate crude futures also rose 61 cents to $76.29 a barrel.
Brent crude oil prices recorded a monthly decline of nearly 2.2%, and West Texas Intermediate crude oil prices also recorded a monthly decline of nearly 3.8% and are likely to hit the lowest level in four months.
expected
Markets were awaiting key data over the next two days, while expectations of a strong recovery in demand from China added to gains in February, according to economists polled by Reuters in the world’s second-largest economy. Factory activity will grow.
Analysts at JPMorgan said in a note to clients that “a recovery in China will boost its appetite for commodities, with oil delivering the biggest gains.”
Oil analysts at JPMorgan kept their average 2023 forecast for Brent crude futures at $90 a barrel.
Analysts at Goldman Sachs said a strong recovery in fuel demand in China and steady supply from non-OPEC producers would push the oil market into deficits in the second half of the year and prompt OPEC to call off OPEC at its June meeting. production reduction measures.
