NEW YORK: Gold prices dipped on Monday as the dollar and bond yields firmed, while traders braced for a busy week of key US inflation prints and major central bank policy meetings, with all eyes on the Federal Reserve.
Spot gold fell 0.3% to $1,954.69 per ounce by 12:15 p.m. EDT (1615 GMT). US gold futures eased 0.4% to $1,968.90.
The dollar index edged up 0.2%, making gold more expensive for overseas buyers, while an uptick in US Treasury yields made zero-yielding bullion less attractive.
“Going into this week with gold is almost like a coin flip,” said Bob Haberkorn, senior market strategist at RJO Futures.
The US consumer price index for May is due at 8:30 a.m. EDT on Tuesday, with the producer price index reading due on Wednesday morning ahead of the Fed’s interest rate decision later that day.
“The fact that if we get a halt on rate hikes would push gold up pretty big despite a hawkish (Fed) statement,” Haberkorn said.
Markets priced in a 76% chance of the Fed keeping rates unchanged, and a 71% chance of a hike in July, according to CME’s Fedwatch tool.
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