Gold falls 1%, silver down 0.5%
China markets closed February 15-23 for Lunar New Year
US markets closed on Monday for Presidents Day holiday
(Updates prices as of 1619 GMT)
By Pablo Sinha
Feb 16 (Reuters) - Gold prices fell more than 1% in low market liquidity on Monday as key markets in the U.S. and Asia were shut for holidays, while a firm dollar put pressure on bullion.
Spot gold (XAU=) was down 1.3% at $4,976.37 per ounce by 1619 GMT. U.S. gold futures (GCcv1) for April delivery lost 1% to $4,996.60 per ounce.
“Gold is range-trading around $5,000/oz in a week with lower liquidity due to holidays,” said UBS analyst Giovanni Staunovo.
U.S. markets were closed for Presidents Day, while markets in China and several other countries in Asia were closed for the Lunar New Year.
The dollar edged higher, making greenback-priced bullion more expensive for holders of other currencies.
Recent U.S. economic data painted a mixed picture for Federal Reserve interest rate cuts, as U.S. consumer prices increased less than expected in January while job growth unexpectedly accelerated in the same month.
Federal Reserve Bank of Chicago President Austan Goolsbee said on Friday that interest rates could go down, but noted that services inflation remained high.
Market participants anticipate the U.S. central bank will keep rates steady at its next meeting on March 18.
Non-yielding bullion tends to do well in low-interest rate environments. (FEDWATCH)
On the geopolitical front, Iran is pursuing a nuclear agreement with the U.S. that delivers economic benefits for both sides, an Iranian diplomat was reported as saying on Sunday.
“I’d pull back my medium-term target for gold from $5,500 to closer to the $5,100-$5,200 range for now, but this is a very fluid situation,” said Zain Vawda, analyst at MarketPulse by OANDA.
Meanwhile, spot silver (XAG=) lost 2% to $75.83 per ounce after a 3% drop earlier. The metal rose 3.4% on Friday.
“As a more cyclically sensitive metal, any sign of a strong economy reduces (silver’s) safe-haven appeal relative to gold, and the strong jobs data suggests less immediate need for haven assets,” Vawda added.
Spot platinum (XPT=) slipped 1.7% to $2,027.39 per ounce, while palladium (XPD=) shed 2% at $1,719.44.

Gold prices fell over 1% due to a stronger dollar and low market liquidity, with key markets in the U.S. and Asia closed for holidays. Spot gold was down 1.3% at $4,976.37 per ounce. Analysts suggest gold is range-trading around $5,000/oz, with expectations for the Federal Reserve to maintain interest rates. Silver also declined by 2% to $75.83 per ounce, reflecting reduced safe-haven appeal amid strong economic data. Platinum and palladium prices also fell.

Reuters

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PRECIOUS-Gold falls more than 1% on stronger dollar in thin trading