WASHINGTON (dpa-AFX) - Gold prices traded lower on Monday as investors awaited the release of key U.S. inflation data for April this week for additional clarity on the Fed's rate trajectory.
Spot gold fell 0.8 percent to $2,340.53 per ounce while U.S. gold futures were down 1.2 percent at $2,346.40.
U.S. producer price inflation data for April is due on Tuesday, while the more closely watched consumer price inflation figures will be published on Wednesday.
Fed Chair Jerome Powell is scheduled to speak on Monday and Wednesday following recent hawkish comments from several Fed officials.
The consumer price index is forecast to rise 0.3 percent on the month and 3.4 percent annually, down from 0.4 percent and 3.5 percent, respectively in March.
Federal-funds futures currently show traders expect the Fed to start lowering its benchmark interest rate in November though there remains a chance of a cut in September.
Chicago Fed President Austan Goolsbee and Minneapolis Fed President Neel Kashkari said on Friday that interest rates are likely to remain at elevated levels until there is clear sign that the rate of inflation is slowing.
Fed Bank of Dallas President Lorie Logan said it's still too early to think about lowering borrowing costs.
Governor Michelle Bowman said she doesn't expect it will be appropriate for the Fed to cut rates in 2024.
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