Gold slips as robust dollar saps appeal – CNBC

American Eagle and South African Krugerrand gold bullion is offered for sale at the Chicago Coin Company May 11, 2006 in Chicago, Illinois.Scott Olson | Getty ImagesGold prices edged lower on Monday, extending the previous session’s losses, as the dollar strengthened after data showing another advance in inflation fueled bets over the Federal Reserve tightening its policy sooner.FundamentalsSpot gold fell 0.1% to $1,781.78 per ounce by 0044 GMT, after slipping to an over one-week trough on Friday. U.S. gold futures dropped 0.1% to $1,782.80.The U.S. dollar steadied close to its highest level since Oct. 13 hit on Friday, making gold less appealing to buyers holding other currencies.Data released on Friday showed the jury was still out on the Fed’s claim that current price spikes are transitory and should moderate with time, with the personal consumption expenditures price index advancing last month to continue a run of inflation at levels not seen in 30 years.The Federal Reserve’s two-day policy meeting concludes on Wednesday.Gold is traditionally seen as an inflation hedge. However, reduced stimulus and interest rate hikes to combat such inflationary pressure tend to push government bond yields up, raising non-interest bearing gold’s opportunity cost.U.S. Treasury Secretary Janet Yellen said on…
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