Bullion stays weak after sharpest weekly fall since June
Spot gold changed hands at $3,987.45 per ounce by 0037 GMT, a decline of 0.2%, having touched its weakest point since mid-July during the previous session. The metal ended last week down 4%, the largest weekly loss it has recorded since June. December-dated US gold futures also moved lower, shedding 0.2% to reach $4,000.80.[S1][S2][S3]
The broader precious-metals complex was mixed. Spot silver added 0.2% to trade at $54 per ounce, while platinum edged down 0.1% to $1,549.42. Palladium gained 0.4% to $1,047.90.[S1]
Energy costs and Fed expectations weigh on the metal
Oil prices retreated on Monday after climbing close to six-month highs at the end of last week, yet continuing strikes on Saudi Arabia kept supply worries at the forefront. Costly energy feeds the view that the Federal Reserve will keep interest rates higher for longer, which lifts the opportunity cost of owning bullion, an asset that produces no income.[S1]
Investors are looking toward the Fed's policy meeting this week and the release of Personal Consumption Expenditures data, the inflation measure the central bank monitors most closely in pursuing its 2% target. Market pricing puts the odds of a rate increase this week at roughly 9%, while the probability of a move in December stands at 80%.[S1]
Saudi airport resumes operations as Houthi threats persist
On the geopolitical side, Saudi Arabia announced that two terminals at its main airport returned to service on Sunday. Yemen's Iran-aligned Houthis, who have described the facility as a military target, pledged to continue their attacks on it.[S1]
