WASHINGTON (dpa-AFX) - Gold prices fell notably on Monday, after having hit a more than one-month high in the previous session on bets that the Federal Reserve might cut interest rates in September.
Spot gold dipped 0.8 percent to $2,371.47 per ounce, while U.S. gold futures were down 0.7 percent at $2,380.70.
A firmer dollar weighed on bullion after a left-wing alliance won the most seats in the French parliament, thwarting the far right in a stunning result to Sunday's second-round vote.
However, no single political faction got even close to the majority needed to form a government, creating political mayhem that has undermined the president's power and shaken the foundations of the European Union's second-largest economy.
Meanwhile, investors grew more confident about a September U.S. rate cut following last week's softer-than-expected jobs data.
The U.S. Labour Department is due to release its reports on consumer and producer prices for June this week. The U.S. CPI is expected to slow to 3.1 percent from 3.3 percent.
Upcoming Congressional testimony by Fed Chair Jerome Powell on Tuesday and Wednesday may also provide greater clarity on Fed's monetary policy path.
Traders currently expect two interest rate cuts in 2024, with the first in September, according to CME's FedWatch Tool.
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