By Brijesh Patel
(Reuters) -Gold prices slipped on Monday, hurt by a stronger dollar and higher Treasury yields, while investors awaited more U.S. data and comments from Federal Reserve officials throughout the week for more cues on the outlook for monetary policy.
Spot gold was down 0.5% at $2,319.99 per ounce as of 10:11 a.m. 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 the outside markets for direction,” said Jim Wyckoff, senior market analyst at Kitco Metals.
“Gold prices are probably going to grind sideways between $2,300 and $2,400 until the next major fundamental catalyst occurs, which may not occur until sometime in July.”
The dollar was up for a third straight session against its rivals, making gold more expensive for other currency holders. U.S. 10-year Treasury yields ticked higher. [USD/] [US/]
Traders are keeping a close watch 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 on Sunday it’s 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 decrease the opportunity cost of holding non-yielding 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.
“Back-to-back weaker-than-expected inflation prints, along with the less hawkish details of the FOMC (Federal Open Market Committee) meeting, have seen appetite for gold increase,” Ryan McKay, senior commodity strategist at TD Securities, said in a note.
“However, with that said, plenty of uncertainty remains regarding timing of expected cuts, and macro positioning’s beta to data surprises will remain elevated in the near term.”
Spot silver slipped 0.8% to $29.30 per ounce, platinum gained 0.3% to $960.45 and palladium dropped 1.4% to $878.
(Reporting by Brijesh Patel and Anmol Choubey in Bengaluru; Editing by Paul Simao)
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