By Ashitha Shivaprasad
Feb 28 (Reuters) – Gold prices fell to two-month lows on Tuesday and were on course for their biggest monthly decline since June 2021, under pressure from a stronger dollar and rising prices. prospects for further interest rate hikes from the US Federal Reserve. .
* Spot gold fell 0.3% to $1,812.20 at 0918 GMT, after hitting its lowest level since late December at $1,804.20. US gold futures fell 0.4% to $1,817.70.
* In early February, prices hit their highest level since April 2022, but soon reversed. Bullion has lost more than 6% so far this month after strong economic data showed signs of resilience in the US economy, raising concerns about further rate hikes from the bank Central American. .
* Fed Governor Philip Jefferson said on Monday he had “no illusions” that inflation would soon return to the US central bank’s target.
* Although gold is considered a hedge against inflation, rising interest rates increase the opportunity cost of holding this non-performing asset.
* Gold is approaching a very attractive support zone between $1,780 and $1,800, but economic data may determine how much of a firm support zone this will be, analyst Craig Erlam said. senior market manager at OANDA.
* The dollar index was heading for a monthly rise, making gold, which trades against the greenback, less attractive to holders of other currencies.
* Among other precious metals, spot silver fell 0.3% to $20.56 an ounce and was on track for its second straight monthly decline. Platinum rose 0.2% to $936.27 and palladium fell 0.3% to $1,426.09. Both were on track to record lower prices for the month.
(Reported by Ashitha Shivaprasad and Kavya Guduru in Bengaluru; Editado en Español by Ricardo Figueroa)