March 9 (Reuters) - Gold fell more than 2% on Monday, as
a stronger dollar weighed on greenback-priced bullion, while
higher energy costs fuelled inflation concerns and further
dimmed the prospects for near-term reductions in interest rates.
FUNDAMENTALS
* Spot gold was down 2.5% at $5,041.89 per ounce, as
of 0048 GMT. U.S. gold futures for April delivery were
down 2.1% at $5,049.40.
* The dollar hovered near a three-month high hit last week,
making bullion more expensive for holders of other currencies.
* The U.S. 10-year Treasury yields climbed to a
near one-month high, raising the opportunity cost of holding
non-yielding gold.
* Oil-driven inflation fears and delayed rate-cut
expectations likely strengthened U.S. yields and the dollar,
outweighing safe-haven demand and pushing gold down.
* Raising geopolitical tensions in the Middle East, Iran on
Monday named Mojtaba Khamenei to succeed his father Ali Khamenei
as supreme leader, signalling that hardliners remain firmly in
charge.
* Crude oil prices rose sharply to over $100 per barrel amid
fears of tighter supply and prolonged disruptions to oil
shipments through the Strait of Hormuz.
* Investors expect the U.S. Federal Reserve to keep interest
rates steady at the end of its two-day meeting on March 18, as
per CME Group's FedWatch tool. The odds of a June hold, which
were below 43% last week, climbed to more than 51%.
* Share futures slid in Asia on Monday as the inflationary
pulse from surging oil prices threatened to raise living costs,
and perhaps interest rates, across the globe.
* Meanwhile, data on Friday showed that U.S. nonfarm
payrolls decreased by 92,000 jobs last month, compared with
economists' expectations for a 59,000 climb, while the
unemployment rate rose to 4.4%.
* Spot silver dropped 4% to $80.99 per ounce. Spot
platinum fell 3.8% to $2,054.65, and palladium was
down 2.1% at $1,590.32.
DATA/EVENTS (GMT)
0130 China PPI YY February
0130 China CPI YY February
(Reporting by Noel John in Bengaluru; Editing by Sherry
Jacob-Phillips)
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