Gold prices fell on Monday to their lowest point in more than a month, as Middle East tensions pushed oil prices higher, fuelling inflation fears and reinforcing expectations of higher-for-longer interest rates.
FUNDAMENTALS
* Spot gold was down 1.1% at $4,488.99 per ounce, as of 0052 GMT, hitting its lowest level since March 30.
* U.S. gold futures for June delivery lost 1.5% to $4,493.30.
* Gold was pressured by rising geopolitical tensions after a drone strike caused a fire at a nuclear power plant in the United Arab Emirates, lifting crude prices and bets of interest rates.
** Saudi Arabia, meanwhile, reported intercepting three drones, as U.S. President Donald Trump warned that Iran must act "fast" after efforts to end the U.S.-Israeli war appeared to have stalled.
** Central banks tend to hike interest rates during times of inflation, which in turn tends to dim non-yielding bullion's appeal.
* Oil prices extended gains on Monday to hit a two-week high.
* Markets are increasingly pricing in a U.S. Federal Reserve rate hike before year-end, with a 50% chance of a move by December, according to CME Group's FedWatch tool.
* Investors await minutes of the Fed's April meeting, due to be released this week, for clues on the central bank's monetary policy direction.
* India has curbed imports of silver in nearly all forms with immediate effect, according to a government order issued on Saturday, as the world's biggest consumer of the metal seeks to rein in shipments and ease pressure on the rupee.
* Gold discounts in India jumped to a record last week, while investment demand kept Chinese premiums firm.
* Gold speculators raised net long positions by 4,963 contracts to 100,627 in the week ended May 12.
* Spot silver fell 2.2% to $74.30 per ounce, platinum lost 0.6% to $1,961.30, and palladium dropped 1.2% at $1,396.25. DATA/EVENTS (GMT) 0200 China Urban Investment (YTD) YY April 0200 China Retail Sales YY April 0200 China Unemp Rate Urban Area April 0500 Japan Chain Store Sales YY April (Reporting by Pablo Sinha in Bengaluru; Editing by Sherry Jacob-Phillips)




















