Gold Glitters Less: Dollar's Strength Weighs on Precious Metals

Gold prices declined on Monday due to low liquidity, as major markets in the U.S. and Asia were closed for holidays. The U.S. dollar's strength further pressured gold, influencing currency-based pricing. Mixed U.S. economic data complicates Federal Reserve's stance on interest rates, affecting bullion market dynamics.

Gold prices took a downturn on Monday, influenced by reduced liquidity with key U.S. and Asian markets shuttered for holidays. Concurrently, a robust dollar exerted additional pressure on bullion prices, with spot gold slipping 0.7% to $5,007.70 per ounce.

The decline comes amid mixed signals from the U.S. economy, where consumer prices rose less than expected in January, but job growth surged unexpectedly. This economic backdrop presents a challenge for the Federal Reserve's interest rate strategy, with implications for gold pricing.

On the geopolitical stage, Iran seeks a nuclear agreement with the U.S., potentially impacting economic relations. Concurrently, other precious metals, such as silver, platinum, and palladium, also experienced price shifts, with silver notably losing its haven appeal amid strong economic indicators.

(With inputs from agencies.)