27.02.202309:07:00UTC+00Gold Hovers Near Two-week Low

Gold prices hovered near two-week lows on Monday as hotter-than-expected U.S. inflation data on Friday fueled bets for a higher interest rate peak from the Federal Reserve.

Spot gold slipped 0.1 percent to $1,809.26 per ounce, while U.S. gold futures were little changed at $1,816.20.

The dollar hovered near a seven-week peak and bond yields remained elevated, denting bullion's appeal.

Data on Friday showed U.S. consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased by the most in nearly two years last month amid a surge in wage gains.

The Fed's preferred inflation gauge also accelerated, adding to markets fears the Fed will have to raise interest rates further and for an extended period.

U.S. Treasury Secretary Janet Yellen told Reuters on Saturday that new U.S. data showing an unexpected jump in inflation in January signals that the fight against inflation "is not a straight line" and more work is needed.

Investors now expect the Fed to raise interest rates to around 5.4 percent by the summer.

Speeches by several Fed officials are and the release of ISM measures of manufacturing and services could influence trading sentiment as the week progresses.