Gold futures pulled back Monday, with prices on track to mark their lowest settlement in more than three weeks despite a global equity market selloff as a rising U.S. dollar appeared to outshine the yellow metal’s appeal as a haven. Gold for August delivery
fell $46.10, or 2.5%, to $1,829.40 an ounce on Comex. Prices based on the most-active contract haven’t settled at a level this low since May 18, according to FactSet data.
sank 95.1 cents, or 4.3%, to $20.98 an ounce, with prices in danger of their lowest finish since May 12. Gold rose Friday as stocks and other assets perceived as risky came under pressure following data that showed the U.S. consumer-price index rose at a 40-year high of 8.6% year-over-year in May, defying expectations of investors looking for evidence that inflation had peaked. The reading is seen prompting the Federal Reserve to move even more aggressively than expected to tighten monetary policy in an effort to get inflation under control, risking a recession. The Fed is widely expected to deliver a rate hike of 50 basis points, or half a percentage point, when it concludes a two-day policy meeting on Wednesday. “Rising rates and soaring yields present a serious headwind for gold short term, because the precious metal pays no income,” Adrian Ash, director of research at BullionVault, told MarketWatch.