On Monday gold prices declined in Asia, as investors got nervous about the timing of a highly expected Federal Reserve rate hike guides investors.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery fell 0.24% to 1,181.70 a troy ounce.
Silver futures for May delivery slumped 1.32% to $16.660 a troy ounce. Copper for May delivery rose 0.61% to $2.770 a pound.
On Friday, gold jumped to a two-week high, as the greenback sold off after the Federal Reserve projected a slower pace of rate hikes following its policy meeting earlier in the week.
Weak dollar boosts the metal's appeal as an
alternative asset and makes dollar-priced commodities cheaper for
holders of other currencies, thus raising the yellow metal's price.
The dollar weakened after the
Federal Reserve downgraded its forecasts for growth and inflation and
lowered its interest rate projections, prompting investors to push back
expectations on the timing and pace of future rate increases.
A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
Investors will be focusing on Tuesday’s U.S. inflation report after Fed Chair Janet Yellen cautioned last week that the stronger dollar was pushing down consumer prices. On Monday, the U.S. is to release a report on existing home sales.
