Gold slides to 9-month low as investors turn to dollar as haven

Spot gold fell 0.5% to $1 725.05 an ounce at 9:14 a.m. in Singapore, after falling 0.5% in the previous session.
Image: Akos Stiller/Bloomberg

Gold extended a decline as the dollar strengthened ahead of US inflation data later this week that could influence the size of the Federal Reserve’s rate hike.

Bullion slid to its lowest level in more than nine months after posting a fourth weekly decline Friday and sinking further on Monday. Investors concerned about the prospect of a global economic downturn have turned to the dollar, which is up more than 2% this month.

US inflation figures this week may stiffen the resolve of Fed policy makers to proceed with another big increase in interest rates later this month. Economists estimate the gauge climbed 8.8% in June from a year-earlier to a fresh four-decade high.

China is scheduled to unveil economic indicators — including gross domestic product, retail sales, fiscal revenue and bank borrowing — that will likely set the pace for monetary and fiscal stimulus for the rest of the year.

Spot gold fell 0.5% to $1 725.05 an ounce at 9:14 a.m. in Singapore, after falling 0.5% in the previous session. The Bloomberg Dollar Spot Index was 0.2% higher following its 1% gain. Silver, platinum and palladium retreated.

© 2022 Bloomberg

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