London — Gold inched lower as the dollar firmed on Monday, reversing some of the previous session’s gains which came after the US Federal Reserve chairman reiterated the central bank’s intention to raise interest rates further, albeit at a gradual rate. Spot gold was down 0.2% at $1,204.76 an ounce at 11.16am GMT while US gold futures were down 0.2% percent at $1,210.60 an ounce. Fed chairman Jerome Powell’s remarks on Friday did not change market expectations for further monetary tightening despite opposition from President Donald Trump. But the market interpreted Powell’s speech as dovish after he said a gradual approach to raising rates remained appropriate to protect the US economy, keep job growth strong and inflation under control. That pushed gold up 1.7% on Friday in its biggest one-day percentage gain since May 2017. But prices remained capped as higher rates, even if they come at a gradual pace, raise the opportunity cost of holding gold, which can be costly to store and i...
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