Gold futures fell on Monday, set to give back some of last week’s sizable gains as prospects for a U.S. interest-rate hike in October helped provide a lift to the U.S. dollar and equities, dulling investment demand for the precious metal.
December gold GCZ5, -0.54% lost $6.50, or 0.6%, to $1,131.30 an ounce on Comex. Prices rose 1.9% on Friday to tally a weekly gain of about 3.1% last week after the Federal Reserve left interest rates unchanged at its latest meeting.
December silver SIZ5, +0.31% meanwhile, edited up by 6.2 cents, or 0.4%, on Monday to $15.22 an ounce.
Jim Wyckoff, senior analyst at Kitco.com, attributed gold’s decline to “a downside technical correction from Friday’s solid gains.”
A higher U.S. dollar index DXY, +0.72% also weighed on prices for the precious metals, he said.
