Gold prices slip on expectations of higher interest rates
GOLD prices extended losses for a third straight session on Tuesday (Jun 7), as expectations of interest rate hikes in the United States and Europe dulled bullion's demand.
Spot gold was down 0.1 per cent at US$1,839.39 per ounce, as of 12.46 am GMT. US gold futures also eased by 0.1 per cent to US$1,841.80.
The Federal Reserve is on track for half point interest rate increases in June, July, and last week's jobs report boosted expectations of continued tightening by the US central bank.
Friday's CPI report is now being awaited for further clues on the pace of US rate increases.
The European Central Bank also meets later this week as investors ramp up their bets on interest rate hikes this year.
Higher rates dent gold's appeal as they increase the opportunity cost of holding non-yielding bullion.
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Japan's real wages posted the largest drop in 4 months in April, the government said on Tuesday, as a surge in inflation eclipsed a rise in nominal wages.
India's gold imports in May jumped 677 per cent from a year ago to the highest level in a year, as correction in prices just before a key festival and wedding season boosted retail jewellery purchases, a government source said on Monday.
State revenue from gold mining companies in Mali rose 23 per cent year-on-year in 2021 to 564.5 billion CFA francs (S$1.3 billion), a mines ministry official said on Monday.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.3 per cent to 1,063.06 tonnes on Monday.
In other metals, platinum fell 0.2 per cent to US$1,015.98 an ounce and palladium was steady at US$2,001.98. Silver was down 0.1 per cent at US$22.03 per ounce. REUTERS
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