Gold slips, market cautious ahead of US data this week
BENGALURU: Gold prices edged lower on Monday as investors remained cautious ahead of a flurry of US data due this week, with firmer Asian stocks also weighing on the market.
Investors will watch US data including June consumer confidence, pending home sales, crude oil inventories and revised first quarter gross domestic product ( GDP) for any signs of softness that could push back rate hike expectations.
“The market is looking at this week with caution... There’s certainly some expectations of disappointing data and also a more dovish Fed, that could keep gold prices elevated,” ANZ analyst Daniel Hynes said.
“Anything on the inflation front will be constantly watched.” Spot gold fell 0.2 per cent to US$ 1,254 per ounce at 0515 GMT, staying not far off a one-week high hit on Friday.
US gold futures for August delivery fell 0.1 per cent to US$ 1,255.2 per ounce.
“We do not see much happening in gold this week and expect a continuation of a sideways slog as a trifecta of weaker oil, a stronger dollar and firmer US equities all combine to keep gold rallies somewhat in check,” said INTL FCStone analyst Edward Meir.
Fed chair Janet Yellen will be speaking on Tuesday and could provide the market with some direction, Meir added.The dollar drifted on Monday as US Treasury yields stayed low amid fading expectations that the Federal Reserve will hike interest rates again later this year. — Reuters