Gold prices fell on Monday, amid a strengthening dollar and rising Treasury yields, as investors awaited more U.S. data and comments from Federal Reserve officials later in the week for more clues on the policy outlook monetary.
Spot gold was down 0.5% at $2,319.99 per ounce at 10:11 am ET (1411 GMT). U.S. gold futures fell 0.6% to $2,334.90.
“There’s really a lack of major, fresh fundamental news, so the gold market is looking to external markets for direction,” said Jim Wyckoff, senior market analyst at Kitco Metals.
“Gold prices will likely move sideways between $2,300 and $2,400, until the next major fundamental catalyst occurs, which may not occur until July.”
The dollar rose for a third straight session against its rivals, making gold more expensive for holders of other currencies. U.S. 10-year Treasury yields rose.
Traders are keeping an eye on upcoming comments from New York Fed President John Williams, Philadelphia Fed President Patrick Harker and Fed Governor Lisa Cook.
Minneapolis Fed President Neel Kashkari said Sunday that it is a “reasonable prediction” that the U.S. central bank will cut interest rates once this year, waiting until December to do so.
Lower interest rates reduce the opportunity cost of holding unprofitable bullion.
The release of U.S. retail sales data on Tuesday, weekly jobless claims on Thursday and flash purchasing managers’ indices on Friday could offer more clarity on consumption and economic strength.
“Weaker-than-expected inflation prints, coupled with less false details from the Federal Open Market Committee (FOMC) meeting, have seen appetite for gold increase,” Ryan McKay, senior strategist for gold, said in a note. commodities at TD Securities.
“However, that said, there remains much uncertainty about the timing of expected cuts and the beta of macro positioning to data surprises will remain elevated in the near term.”
Spot silver slipped 0.8% to $29.30 an ounce, platinum gained 0.3% to $960.45 and palladium fell 1.4% to $878. (Reporting by Brijesh Patel and Anmol Choubey in Bengaluru; Editing by Paul Simao)
