Gold edges down on firmer dollar, US rate-hike worries; Spot gold crosses $1,837 per ounce

Gold prices fell on Monday, weighed down by a stronger dollar and after recent US economic data raised worries that the Federal Reserve could hike interest rates further.

FUNDAMENTALS

* Spot gold was down 0.2% at $1,837.59 per ounce, as of 0048 GMT. US gold futures eased 0.1% to $1,847.60.

* The dollar index was up 0.2%, making greenback-priced bullion less attractive for buyers holding other currencies.

* Money markets are now expecting the Fed to raise benchmark rates above 5% by May, with rates to peak at 5.3% in July, after recent data showed a tight job market, along with high inflation and consumer prices.

* Gold is considered a hedge against soaring inflation, but high interest rates increase the opportunity cost of holding non-yielding bullion.

* Data on Friday showed US import prices dropped for a seventh straight month in January amid declining costs for energy products, leading to the smallest annual increase in imported inflation in two years.

* A sharp retreat in domestic prices boosted retail demand for physical gold in India last week, prompting dealers to charge premiums for the first time in more than three months.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.13% to 919.92 tonnes on Friday from 921.08 tonnes on Thursday. 

* Spot silver lost 0.7% to $21.58 per ounce, platinum fell 0.3% to $914.17 and palladium shed 0.6% to $1,488.61.

* Market activity could be relatively low on Monday due to a holiday in the United States.