Gold prices edged lower in early Asian trade on Monday, pushed down by a stronger U.S. dollar and as chances of more interest rate hikes by the Federal Reserve weighed on bullion’s appeal.

Spot gold fell 0.2% to $1,915.29 per ounce by 0249 GMT, while U.S. gold futures fell 0.3% to $1,923.10.

“Over the near term, I suspect a pullback towards the $1,910-$1,913 area will be snapped up and bulls will try and target the highs around $1,937,” said Matt Simpson, senior market analyst at City Index.

Simpson said buying from bargain hunters could be supporting gold.

Gold heads for quarterly fall as more rate hikes loom

While stagnant U.S. consumer spending in May suggested the Fed’s rate hikes to tame inflation were slowly working, the core PCE price index, which excludes food and energy prices and is the Fed’s preferred measure of inflation, increased 4.6% year-on-year, after advancing 4.7% in April.

“The conditions appear ripe for gold to extend its bounce from the $1,900 area,” Simpson added.

Investors see an 87% chance of a 25 basis points hike in July, according to CME’s Fedwatch tool, and they expect rates to stay in the 5.25%-5.5% range before decreasing in 2024.

Bullion ended 2.2% lower for June and 2.5% lower for the second quarter on expectations of a longer Fed rate hike path. High interest rates discourage investment in non-yielding gold.

The dollar index edged up 0.1%, close to the two-week high it hit on Friday, making gold expensive for holders of other currencies.

A U.S. data-heavy week includes the U.S. Labour Department’s job openings and labour turnover survey, monthly payrolls report and minutes of the June 13-14 Fed meeting.

Japan’s Nikkei share average jumped as a Bank of Japan survey signalled a domestic recovery, while China’s factory activity growth slowed in June as firms grew increasingly concerned about sluggish market conditions.

Spot silver was little changed at $22.75 per ounce on the day, while platinum rose 0.2% to $902.64 and palladium gained 0.6% to $1,234.97.