Gold Prices Hover At 2-1/2-year Lows

Gold prices hit a new 2-1/2-year low on Monday, with a stronger dollar and rising bond yields weighing on the precious metal.

Spot gold slipped 0.1 percent to $1,641.21 per ounce, after having hit its lowest level since April 2020 earlier in the day. U.S. gold futures were down half a percent at $1,647.25.

The dollar index, which tracks the greenback against a basket of six other currencies, climbed to a fresh 20-year high, making bullion more expensive for foreign buyers.

A renewed selloff in British gilts pushed euro zone yields higher after Britain's new chancellor Kwasi Kwarteng announced a sweeping package of tax cuts.

On the data front, this week's trading may be impacted by reaction to reports on durable goods orders, consumer confidence, new home sales and personal income and spending.

The much-anticipated growth figures of the U.S. GDP and a batch of speeches from Federal Reserve officials including Bullard, Bowman and Powell would also be keenly watched.

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