(MENAFN- Khaleej Times) Gold prices held firm on Monday, below a3-1/2-month peak hit last week, amid expectations of further US interest rate hikes to come this year.
Spot gold was mostly unchanged at $1,322.50 an ounceat 0259 GMT. Last week, the metal touched its highest since Sept. 15 at $1,325.86.
are Dh160 for 24-karat and 22-karat can be bought for Dh150.25.
Spot gold rose for a fourth straight week last week.
US gold futures were also mostly unchanged onMonday at $1,321.50 an ounce.
"January is usually a good month for gold prices and should remain so on the anticipation of physical demand ahead of the Chinese New Year," said Stephen Innes, APAC head of trading at Oanda.
"While there could be some downside pressure from a possible US dollar correction, gold will likely remain firm until a March Fed hike possibility comes on the radar," Innes said.
The US December non-farm payrolls report on Friday was weaker than expected, but investors reckoned the US Federal Reserve would still raise interest rates multiple times this year, although at a gradual pace.
The dollar held steady above a recent 3-1/2-month lowagainst a basket of currency peers on Monday.
Gold is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
Meanwhile, hedge funds and money managers raised their net long positions in COMEX gold in the week to Jan. 2, US Commodity Futures Trading Commission (CFTC) data showed on Friday.
Holdings of SPDR Gold Trust, the world's largestgold-backed exchange-traded fund, fell 0.14 percent to 834.86 tonnes on Friday from 836.04 tonnes on Thursday.
Physical gold demand across Asia remained subdued last week as prices rallied to a three-and-a-half-month high, keeping retail buyers away from the market.
Among other precious metals, spot silver inched 0.1 percent lower to $17.20 an ounce, after having hit a 1-1/2-month high on Friday at $17.29.
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