Gold prices fell to a new 2-1/2-year low on Monday, weighed down by a sturdy dollar and prospects of further interest rate hikes by the U.S. Federal Reserve to bring down inflation.
* Spot gold was down 0.3% at $1,638.59 per ounce, as of 0053 GMT, after hitting its lowest level since April 2020 earlier in the session.
* U.S. gold futures fell 0.6% to $1,645.8.
* The dollar index scaled a fresh peak since 2002 buoyed by a hawkish Fed, making the greenback-priced bullion more expensive for buyers holding other currencies.
* Higher interest rates dull bullion's appeal since the metal yields no interest. Gold prices have fallen more than 20% since scaling above the key $2,000 per-ounce mark in March.
* Atlanta Fed President Raphael Bostic said on Sunday he still believes the U.S. central bank can tame inflation without substantial job losses given the economy's continued momentum.
* A downturn in business activity across the euro zone deepened in September, according to a survey which showed the economy was likely entering a recession as consumers rein in spending amid a cost of living crisis.
* Gold premiums in top consumer China climbed last week, helped by strong demand for bullion, while prices in India traded at a discount for the first time in four weeks due to an uptick in domestic rates.
* Holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.31% to 947.23 tonnes on Friday.
* Spot silver fell 0.8% to $18.68 per ounce, platinum rose 0.7% to $860.13, and palladium gained 0.4% to $2,076.10.
(Reporting by Eileen Soreng in Bengaluru; Editing by Subhranshu Sahu)