Gold prices fell early Monday in Asia on the back of a rising dollar, as traders await comments from a series of Federal Reserve officials for further guidance on the timetable for reducing US interest rates.
FUNDAMENTALS
* Spot gold was down 0.3% at $2,294.97 an ounce, as of 0040 GMT. U.S. gold futures slipped 0.3% to $2,301.00 an ounce.
* The dollar index strengthened 0.1%, making bullion less attractive to buyers holding other currencies.
* Data on Friday showed that U.S. job growth slowed more than expected in April, reinforcing expectations that the Fed will begin cutting interest rates later this year.
* Markets assess the probability of a cut in US rates in September at 67%, according to the CME’s FedWatch tool. High interest rates increase the opportunity cost of holding bullion.
* Chicago Fed President Austan Goolsbee said Friday the U.S. central bank should improve its quarterly “dotted chart” of policymakers’ views on the path of interest rates by including individual economic expectations that inform each of them. Separately, New York Fed President John Williams said the 2% inflation target was “critical” to the Fed’s efforts to achieve price stability.
* Demand for physical gold in India remained subdued last week despite a slight price correction, with buyers expecting an even bigger drop, while Chinese premiums fell for the second consecutive week due to sluggish demand during the holidays.
* Spot silver fell 0.2% to $26.49 an ounce, platinum lost nearly 0.7% to $948.40 and palladium fell 0.5% to $940, 60 dollars.
