May 18 (Reuters) - Gold prices fell on Monday to their
lowest point in more than a month, as Middle East tensions
pushed oil prices higher, fuelling inflation fears and
reinforcing expectations of higher-for-longer interest rates.
FUNDAMENTALS
* Spot gold was down 1.1% at $4,488.99 per ounce, as
of 0052 GMT, hitting its lowest level since March 30.
* U.S. gold futures for June delivery lost 1.5% to
$4,493.30.
** Gold was pressured by rising geopolitical tensions after
a drone strike caused a fire at a nuclear power plant in the
United Arab Emirates, lifting crude prices and bets of interest
rates.
** Saudi Arabia, meanwhile, reported intercepting three
drones, as U.S. President Donald Trump warned that Iran must act
"fast" after efforts to end the U.S.-Israeli war appeared to
have stalled.
** Central banks tend to hike interest rates during times of
inflation, which in turn tends to dim non-yielding bullion's
appeal.
* Oil prices extended gains on Monday to hit a two-week
high.
* Markets are increasingly pricing in a U.S. Federal Reserve
rate hike before year-end, with a 50% chance of a move by
December, according to CME Group's FedWatch tool.
* Investors await minutes of the Fed's April meeting, due to
be released this week, for clues on the central bank's monetary
policy direction.
* India has curbed imports of silver in nearly all forms
with immediate effect, according to a government order issued on
Saturday, as the world's biggest consumer of the metal seeks to
rein in shipments and ease pressure on the rupee.
* Gold discounts in India jumped to a record last week,
while investment demand kept Chinese premiums firm.
* Gold speculators raised net long positions by 4,963
contracts to 100,627 in the week ended May 12.
* Spot silver fell 2.2% to $74.30 per ounce, platinum
lost 0.6% to $1,961.30, and palladium dropped 1.2%
at $1,396.25.
DATA/EVENTS (GMT)
0200 China Urban Investment (YTD) YY April
0200 China Retail Sales YY April
0200 China Unemp Rate Urban Area April
0500 Japan Chain Store Sales YY April
(Reporting by Pablo Sinha in Bengaluru; Editing by Sherry
Jacob-Phillips)
Print
