March 22 (Reuters) - Gold prices fell on Monday as Turkey
replacing its central bank governor with a high interest rate
critic led to investors flocking towards the safety of the
dollar, on fears that the move would threaten other financial
markets.
FUNDAMENTALS
* Spot gold XAU= fell 0.3% to $1,739.80 per ounce by 0052
GMT. U.S. gold futures GCv1 were down 0.2% at $1,738.80 per
ounce.
* President Tayyip Erdogan, on Saturday, unexpectedly fired
Turkey's central bank chief, Naci Agbal, replacing him with a
former ruling party legislator and opponent of tight monetary
policy, Sahap Kavcioglu. * Concerns that developments in Turkey would threaten other
financial markets strengthened the dollar, making gold expensive
for non-U.S. investors. USD/
* Meanwhile, Federal Reserve Chair Jerome Powell, told Wall
Street Journal the United States would pull out of the crisis
"stronger and better, as we have done so often before."
* Also, big U.S. banks will have to resume holding an extra
layer of loss-absorbing capital against U.S. Treasuries and
central bank deposits from next month after the Fed said on
Friday it would not extend a temporary pandemic regulatory break
due to expire this month. * Last week, yields spiked on the longer end of the curve,
fuelled by the Fed policy meeting, boosting economic growth
expectations for 2021. US/
* Higher yields lift the opportunity cost of holding
non-yielding bullion.
* Hedge funds and money managers raised their bullish
positions in COMEX gold and cut them in silver contracts in the
week to March 16, the U.S. Commodity Futures Trading Commission
(CFTC) said on Friday. CFTC/
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.3% to 1,051.78
tonnes on Friday from 1,048.28 tonnes on Thursday. GOL/ETF
* Palladium XPD= rose 0.2 % to $2,641.18, Silver XAG=
fell 1.2% to $25.92 and platinum XPT= was down 1.3% at
$1,181.28.
DATA/EVENTS (GMT)
1400 US Existing Home Sales Feb