Gold prices fell on Monday, hurt by a stronger dollar and higher Treasury yields, as investors await U.S. data and comments from Federal Reserve officials throughout the week for more guidance on the outlook for monetary policy.
Spot gold was down 0.5% at $2,319.99 an ounce as of 10:11 am ET (1411 GMT). U.S. gold futures fell 0.6% to $2,334.90.
“There really is a lack of fundamental news, so the gold market is looking to outside markets for direction,” said Jim Wyckoff, senior market analyst at Kitco Metals.
“The price of gold will likely hover between $2,300 and $2,400 until the next fundamental catalyst occurs, which may not happen until July.
The dollar appreciated for the third consecutive time against its rivals, making gold more expensive for holders of other currencies. US 10-year Treasury yields rose.
Traders are closely watching 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 it was “reasonable to anticipate” the U.S. central bank would cut interest rates once this year, until December.
Lower interest rates lower the opportunity cost of holding bullion without yield.
The release of U.S. retail sales data on Tuesday, weekly jobless claims on Thursday and rapid purchasing managers’ indexes on Friday could provide more clarity on consumption and the strength of the economy.
“Appetite for gold increased following the release of weaker-than-expected inflation data and less optimistic details from the FOMC (Federal Open Market Committee) meeting,” said Ryan McKay , senior commodities strategist at TD Securities, in a note.
“However, that said, there remains much uncertainty regarding the timing of expected reductions, and beta from 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)
