Gold retreats from 3-week high as dollar, equities rise
21-Sep (Reuters) – Gold retreated from the previous session’s near three-week high on Monday as strength in stocks and the dollar dampened a rally fuelled by the Federal Reserve’s decision last week to keep U.S. interest rates on hold.
European stocks climbed 1.3 percent on Monday, while the dollar rose against a basket of currencies after speculation that other major central banks may ease policy after the Federal Reserve delayed an interest rate hike.
Spot gold was down 0.5 percent at $1,133.70 an ounce at 1235 GMT, while U.S. gold futures for December delivery were down $4.70 an ounce at $1,133.10.
Gold held in a narrow range earlier this month on uncertainty over whether the Fed would hike rates for the first time in nearly a decade, lifting the opportunity cost of holding non-yielding bullion while potentially boosting the dollar.
It rose sharply after the Fed shied away from a hike on Thursday, peaking at $1,141.50 the following day, but has now retreated below that level.
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