By Ashitha Shivaprasad
Feb 27 (Reuters) – Gold hit a two-month low on Monday after strong U.S. economic data raised fears of further interest rate hikes by the Federal Reserve, darkening bullion’s outlook.
* As of 0927 GMT, spot gold was down 0.1% at $1,809.36 an ounce, after hitting its lowest since late December at $1,806.50. U.S. gold futures were flat at $1,816.60.
* “As the Fed’s preferred measure of inflation accelerated in January, appetite for non-interest-bearing gold could be hurt by bets on short-term rate hikes, ultimately driving prices down,” said Lukman Otunuga, principal analyst at FXTM. .
* “Gold (will remain) highly sensitive to statements from Fed officials, key economic data and any inflation-related issues as we head into the new month,” he added.
* Reports on Friday showed U.S. consumer spending rose in January to its highest level in nearly two years as inflation accelerated, adding to market fears the Fed could continue to increase rates during the summer. .
* Earlier in the month, gold prices hit their highest level since April 2022, but have since fallen more than 7% after a series of US data indicated a resilient economy.
* The dollar index fell 0.1%, still near a seven-week high.
* In other precious metals, spot silver was down 0.2% at $20.72 an ounce; platinum rose 0.5% to $913.70; and palladium rose 0.5% to $1,410.66.
(Edited in Spanish by Carlos Serrano)