Gold futures settled at its nine months low level on Monday, weighed down by the strength in dollar value and on looming aggressive interest rate hike by Federal Reserve. Dollar has surged above its 2 decade high level as investors opted greenback as perceived safe-haven asset amid the escalated worries over global recession. Fed ammunition to deliver another 75-basis-point rate hike this month got buoyed after US job numbers gained better than expected. Higher interest rates raises opportunity cost of non-yielding yellow metal.
Gold futures for August declined by $10.60 or 0.60% to $1731.70 ounce on the Comex division of the New York Mercantile. Spot gold shrunk by 0.3% to $1,735.91per ounce.