AEMA, coalition launch legal challenge to BLM Conservation and Landscape Health Rule
The American Exploration & Mining Association was joined by a coalition in filing a challenge last Friday in the Wyoming district court.
Gold extended a decline after plunging below $1,700 an ounce last week, as strong US jobs data intensified concerns that the Federal Reserve will remain aggressive with rate hikes.
The metal came under pressure from the stronger dollar Monday amid weak risk sentiment in equity markets. Relentless Fed policy tightening has weighed on the asset through the year, causing a 19% plunge from its year-high in March.
The precious metal last week had its largest weekly gain since July, though trimmed the advance after nonfarm payrolls data on Friday showed the unemployment rate returning to a historic low. That diminished hopes the US central bank may moderate its hawkish stance, which had built following weaker economic prints earlier.
“A longer period before a change in the Fed’s stance could mean that the gold price is pinned down for longer,” analysts at Heraeus wrote in a note. “Once a slowing US economy forces a Fed policy pivot, the dollar would be expected to begin depreciating, in turn boosting the gold price.”
All eyes will now be on this week’s US inflation data, which was hotter than expected in August. Economists see gains in the consumer price index accelerating, providing little respite for the Fed as it tries to cool the economy.
Spot gold declined 1.1% to $1,676.99 an ounce as of 1:04 p.m. in London, after finishing last week up 2.1%. The Bloomberg Dollar Spot Index rose 0.2%. Silver and platinum fell, while palladium gained.
(By Sing Yee Ong and Eddie Spence)
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