FX.co ★ Gold Holds Near Four-week Lows On Rate Hike Jitters

Gold prices fell on Monday to hit their lowest in four weeks as a stronger dollar and rising Treasury yields dented the precious metal's appeal.

The dollar climbed to a level last seen in March 2020, making the greenback-priced gold costlier for other currency holders.

Investors expect the Federal Reserve to raise rates by 50 bps at the May meeting, followed by even bigger hikes in subsequent months in order to tame soaring inflation.

Spot gold dipped 0.8 percent to $1,915.19 per ounce, after having earlier hit its lowest since March 29 at $1,911.80. U.S. gold futures were down 0.9 percent at $1,916.20.

The downside remained capped somewhat as a spike in Covid cases in China's capital city of Beijing sparked worries about the implementation of more stringent restrictions to contain the outbreak.

The business district of Chaoyang started three days of mass testing of those working and living in the area.

Cases continue to grow in Shanghai, where authorities have erected fences outside residential buildings designated as "sealed areas."

China registered about 22,000 new COVID-19 infections on Sunday, with many cities and provinces under some version of a lockdown.