RIYADH: Gold prices dropped on Tuesday toward their lowest since mid-February, as an elevated dollar and an imminent interest rate hike by the US Federal Reserve dampened bullion’s appeal as an inflation hedge.
Spot gold was down 0.3 percent at $1,858.10 per ounce at 0510 GMT. On Monday, bullion fell more than 2 percent to its lowest since Feb. 16, as the dollar and yields strengthened on increased prospects for faster rate hikes by the US central bank.
US gold futures were also down 0.3 percent at $1,857.20.
Spot silver dipped 0.5 percent to $22.52 per ounce.
Platinum eased 0.1 percent to $934.94, while palladium advanced 0.8 percent to $2,234.12.
Chicago wheat futures rose on Tuesday after US winter crop ratings fell below expectations and hot weather curbed India’s production prospects, raising concerns over world supplies.
Corn and soybean gained support from adverse weather, delaying US planting.
The most-active wheat contract on the Chicago Board of Trade gained 0.5 percent to $10.60-1/2 a bushel at 0233 GMT.
Corn climbed 0.3 percent to $8.06 a bushel, and soybean rose 0.1 percent to $16.46-1/2 a bushel.
London copper, aluminum down
London copper and aluminum prices fell to a three-month low on Tuesday, as COVID-19 restrictions in top consumer China and the prospect of aggressive US rate hikes fueled worries about weaker global growth hitting metals demand.
Benchmark three-month copper on the London Metal Exchange was down 2.3 percent at $9,546 a ton as of 0432 GMT, its lowest since Jan. 31.
LME aluminum fell 1.5 percent to $3,008 a ton after hitting its lowest since Feb. 3.
Zinc lost 3.6 percent to $3,961, lead eased 0.3 percent to $2,254 and tin fell 0.2 percent to $40,200.
The Shanghai Futures Exchange is closed for a public holiday.
(With input from Reuters)