Gold prices edged lower on Monday amidst a backdrop of a resilient dollar, with investors keenly anticipating insights from Federal Reserve officials and upcoming economic data to gauge the trajectory of US interest rates.
The spot price of gold dipped by 0.2% to $2,407.29 per ounce, while gold futures saw a decline of 0.4% to settle at $2,411.20.
Investors directed their attention towards US bond futures, which fell alongside a strengthening dollar, reflecting market speculation that recent political developments, such as the attack on US presidential candidate Donald Trump, could potentially heighten market instability.
A stronger dollar typically pressures gold, as investors holding other currencies find it more expensive to purchase gold denominated in US dollars.
Federal Reserve Chairman Jerome Powell is scheduled to deliver remarks later today, with additional Fed officials set to speak throughout the week. Economic indicators due this week include US retail sales, industrial output for June, and weekly unemployment claims.
In a recent development, US consumer prices experienced their first decline in four years during June, bolstering expectations that the Federal Reserve may cut interest rates in September.
The allure of gold, a non-yielding asset, tends to increase during periods of low interest rates.
Meanwhile, physical demand for gold in key Asian markets softened last week as higher prices prompted buyers to postpone purchases. Dealers in India offered the largest discounts in nearly three and a half months in a bid to attract customers.
Other precious metals also saw declines: spot silver decreased by 0.5% to $30.62 per ounce, platinum declined 0.3% to $995.35, and palladium sank 1.3% to $956.81.
The movement in precious metal prices underscores the cautious sentiment prevailing among investors amidst ongoing economic uncertainties and forthcoming Fed communications.
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