Gold prices fell on Monday to their lowest level in about two weeks.
This was driven by comments from U.S. Federal Reserve Chairman Kevin Worsch regarding the possibility of raising interest rates to combat inflation.
Spot gold fell 0.8% to $4,417.04 per ounce.
This marked its weakest level since August 19. U.S. gold futures also fell 1.4% to $4,466.80.
Gold prices had lost more than 3% on Friday, following Warsh’s remarks at the Jackson Hole symposium.
He emphasized that the Federal Reserve would have a lot of work to do if inflation did not move toward the 2% target.
Furthermore, tensions in the Middle East added to market pressures.
U.S. military operations in Iran caused oil prices to rise by more than 2%.
This has reinforced inflation fears and the likelihood of monetary policy tightening.
Markets are awaiting U.S. labor market data this week, particularly the nonfarm payrolls report.
These figures could determine the direction of gold prices in the coming period.
Forecasts indicate a 60% probability of an interest rate hike in September.
As for other precious metals, silver fell to $66.10, platinum to $1,797.03, and palladium to $1,386.96.
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