Spot gold was steady at $2,411.25 per ounce and U.S. gold futures slid 0.1% to $2,417.40
Gold prices were little changed on Monday, as investors awaited comments from Fed officials and economic data for further cues on the trajectory of U.S. interest rates.
Spot gold was stable at $2,411.25 per ounce by 0434 GMT. U.S. gold futures slid 0.1% to $2,417.40.
Federal Reserve Chair Jerome Powell is due to speak later in the day, and a few other officials will speak later in the week. Data sets due this week include U.S. 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 reduce 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 see a 93% possibility of U.S. cut rate in September, shows the CME FedWatch Tool. Non-yielding bullion’s appeal tends to grow in a low interest rate environment.
In wider markets, the dollar gained on safety bids after an attempted assassination of former U.S. President Donald Trump, which raised his odds of winning.
A stronger dollar makes gold more expensive for other currency holders.
I am 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, according to City Index senior analyst Matt Simpson.
On the physical front, gold dealers in India continued to offer discounts to entice consumers amid higher prices.
Analysts at ANZ said in a note that above-average rainfall and any favourable cut in import duty will provide tailwinds for Indian demand in the short term.
