Gold prices edged lower on Monday and hovered near a nine-month low, as the dollar rose to hover near a 20-year peak amid bets for steep interest-rate hikes. The dollar is also seeing safe-haven demand on recession worries as Russia turns off Nord Stream 1, the biggest single pipeline carrying Russian gas to Germany for annual maintenance.
Germany has warned that Moscow could halt gas flows permanently. Flows are expected to stop for 10 days, but it is feared that the shutdown might be extended due to war in Ukraine.
Spot gold dipped 0.4 percent to $1,735.82 per ounce, while U.S. gold futures were down half a percent at 1,733.75.
Stronger-than-expected U.S. jobs data released on Friday added to expectations of another 75-bps rate hike at the upcoming Fed meeting later this month.
In an interview with CNBC on Friday, Atlanta Fed President Raphael Bostic said he is fully supportive of one more 75-basis points rate hike.
Rate hikes increase the opportunity cost of holding non-yielding bullion.
