WASHINGTON (dpa-AFX) - Gold prices edged lower on Monday as a stronger dollar made bullion less attractive for buyers holding other currencies.
Spot gold slipped 0.1 percent to $1,955.05 per ounce, while U.S. gold futures were down 0.3 percent at $1,966.25.
The dollar held steady in European trade due to uncertainty over the path of U.S. monetary policy.
Inflation in key parts of the U.S. service industry 'remains elevated and has not shown signs of easing,' the Fed said in its latest monetary policy report to Congress.
On Friday, Fed Gov. Christopher Waller said that core inflation was not coming down like he expected. Richmond Fed President Thomas Barkin also backed the idea of more rate hikes, citing persistent inflation.
The hawkish tone in their comments threw cold water on bets that the Fed will end its interest rate hike campaign this year, after a highly expected 0.25 percentage-point increase next month.
Investors also turned their focus to China's June loan prime rate announcement and Fed Chair Jerome Powell's testimonies due this week for clues on the monetary policy path ahead.
The People's Bank of China is widely expected to cut its benchmark loan prime interest rates on Tuesday, following a similar reduction in medium-term policy loans last week.
The Bank of England meets on Thursday and the central bank is expected to raise interest rates by a quarter point to a 15-year high of 4.75 percent, marking its 13th straight rate rise.
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