Gold for December delivery was down 0.36% to $1,129.90 an ounce on the Comex Monday morning.
Prices of the yellow metal were falling due to indications that the Federal Reserve may raise interest rates this year, according to Reuters. The Fed left the possibility of a raise in interest rates in September open at a conference in Jackson Hole, WY, according to the news service.
Federal Reserve Vice Chairman Stanley Fischer said U.S. inflation will likely rebound as pressure from the dollar decreases, which would allow for a gradual rate increase.
"Last week it was felt that maybe the Fed would postpone the interest rate hike to December, but now, after the latest comments, you can say that it's still possible that it will be in September," LBBW analyst Thorsten Proettel told Reuters. "Of course, that is a burden for the gold price."
Insight from TheStreet's Research Team:
Yamana Gold is a core holding of David Peltier's Stocks Under $10 Portfolio. During the most recent weekly roundup, this is what Dave had to say about the stock:
Yamana Gold ( (AUY) - Get Yamana Gold Inc. Report; 2,300 shares; 2.65%; Inflection Point; $12.50 price target): This gold-and- copper exploration company operates seven mines and several ongoing development projects in Brazil, Argentina and Chile. The shares dropped 14% this week, along with the underlying price of gold. We believe that management can boost core production and cut costs in the coming quarters.