Azernews.Az

By Bloomberg

Gold fell as investors weighed the probable timing of U.S. rate increases against risks that Greece might be ejected from the euro. Platinum and palladium declined.

Bullion for immediate delivery lost as much as 0.3 percent to $1,160.85 an ounce and traded at $1,161.59 at 10:46 a.m. in Singapore, according to Bloomberg generic pricing. While the metal advanced in the three days to Friday, it still ended last week lower for a third weekly drop after falling to $1,147.36 on Wednesday, the lowest since March 18.

Gold declined 1.9 percent this year as speculation that the Federal Reserve will raise borrowing costs trumped concerns that the euro zone may fracture and that a stock market rout in China may disrupt global markets. Chair Janet Yellen on Friday maintained her call for a rate rise this year and is set to deliver her semi-annual testimony to Congress this week. At the weekend, Greece was given three days to enact reforms to keep alive the country’s chances of staying in the euro.

“The influence of Greece and China on the Fed’s decision to raise interest rates is waning,” Huatai Great Wall Futures Co. said in a note. “As the outlook for higher rates this year is maintained, precious metals will remain under pressure.”

U.S. officials considering the timing of the first rate increase since 2006 are weighing a domestic economy that has shown improvement since their last meeting against global risks spurred by the swings in Chinese equities and Greek crisis.

The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major currencies, rose as much as 0.1 percent on Monday and is 5.2 percent higher this year. An appreciating dollar tends to curb gold’s gains.

Futures for delivery in August rose 0.3 percent to $1,161 an ounce on the Comex in New York. Bullion of 99.99 percent purity fell as much as 0.3 percent to 232 yuan a gram ($1,162.11 an ounce) on the Shanghai Gold Exchange and was at 232.25 yuan.

Spot silver fell 0.1 percent to $15.5657 an ounce after three days of gains. Platinum for immediate delivery lost 0.7 percent to $1,024.75 an ounce, while palladium fell 0.5 percent to $648.95 an ounce.