Gold prices fell to a multi-week low on Monday as oil climbed higher. The yellow metal was dragged down by comments from William Dudley, Fed New York President, which gave an upbeat view of the economy.
Dudley cautioned the central bank against pausing the cycle of interest rate hikes.
The New York Fed President said inflation levels were on the low side, but should rise higher with wages as the job market continues to tighten.
Dudley’s remarks were in line with Fed Chair Janet Yellen’s, who spoke at a press conference after the central bank made the decision to raise interest rates.
Gold Prices Down 0.4%
Gold futures slipped to a low of $1,249.80 before settling at $1,251.20 per troy ounce, down 0.4%.
Last week, gold prices fell 1.2%, or $13.20, marking the second straight weekly decline.
Silver futures fell 7.5 cents to $16.59 per troy ounce after hitting a low of $16.56.
Investors will be looking ahead to comments from Chicago Fed President Charles Evans, who will be speaking later today, for more insight into the economy and monetary policy.
Meanwhile, oil climbed higher on Monday after a week of losses. But gains were limited as increased production in the U.S. continues to weigh on the market and offset efforts to curb the oversupply.
U.S. West Texas Intermediate crude fell to $45.09 per barrel, up 0.3%. Brent oil gained 21 cents to trade at $47.58 per barrel.
Last week, U.S. crude lost $1.13, while Brent oil prices declined by 78 cents. Brent and U.S. crude posted four straight weeks of losses.
U.S. drillers last week added rigs, according to a report from Baker Hughes. The addition of new rigs indicates further production gains in the U.S.
Ramped up production in the U.S. has offset efforts by OPEC and other producers to stem the global oversupply.
OPEC and some non-OPEC producers last month agreed to extend an agreement to cut production by 1.8 million barrels per day until March 2018.