Gold eases, investors seek more cues on US Fed's rate path
Gold prices dipped on Monday as the dollar held firm, while investors awaited comments from Federal Reserve officials and economic data for further cues on US interest rate trajectory.
Spot gold eased 0.1 per cent at $2,409.54 per ounce, as of 0250 GMT. US gold futures fell 0.2 per cent at $2,414.70.
The dollar rose on safety bids after an attempted assassination of former US President Donald Trump, which raised his odds of winning.
A stronger dollar makes gold more expensive for buyers holding other currencies.
"I'm not convinced a Trump victory or loss directly links to a binary outcome for gold's direction in the same way Fed policy expectations have been. But if Trump stirs up trade wars, then you'd think it builds a good case for gold to perform well under his presidency," City Index senior analyst Matt Simpson said.
Fed Chair Jerome Powell is due to speak later in the day and a few other officials later in the week. Data sets due this week include US retail sales, industrial output for June and weekly jobless claims.
"If we get another big miss on retail sales, it will reinforce there is a sense of urgency to cut rates, which could help gold. If gold breaks the $2,450 barrier, then prices will see new record highs," said Ilya Spivak, head of global macro, Tastylive.
Markets are pricing in a 93 per cent chance the Fed will cut rates in September, according to the CME Fedwatch Tool. Non-yielding bullion's appeal tends to shine in a low interest rate environment.
Key metals consumer China's economy slowed in the second quarter, data showed, keeping alive expectations Beijing will need to unleash more stimulus.
Spot silver rose 0.4 per cent to $30.88 per ounce, platinum slipped 0.3 per cent at $995.80 and palladium dropped 0.7 per cent to $962.50.
Source: http://in.reuters.com