Gold prices slid on Monday after a surprise announcement from OPEC+ about a cut to oil output sparked inflation concerns and raised bets of an interest rate hike at the US Federal Reserve’s upcoming May meeting.
Spot gold was down 0.8 per cent at $1,951.37 per ounce, as of 0401 GMT, its lowest in nearly a week. US gold futures shed 0.9 per cent to $1,968.20.
The opportunity cost of holding non-yielding bullion rises when interest rates are increased to lower inflation.
Gold has fallen “as investors weigh up the lure of gold as a safe-haven asset, versus the potential for higher-for-longer interest rates.
