Shafaq News / Gold prices eased on Monday as traders awaited December U.S. inflation data that could stress the need for earlier-than-anticipated interest rate hikes by the Federal Reserve.
Spot gold was down 0.2% at $1,792.22 per ounce, as of 0455 GMT, after hitting its lowest level since Dec. 16 of $1,782.10 on Friday. U.S. gold futures fell 0.3% to $1,791.30.
U.S. Treasury yields surged last week after Fed minutes suggested the possibility that the central bank might reduce its balance sheet sooner than anticipated.
Gold is considered a hedge against higher inflation, but the metal is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion.
Fed funds futures have priced in an almost 90% chance of a rate hike in March and a more than 90% chance of another one by June.