Gold slips as investors await the speech of the Federation Reserve chair
Shafaq News/ Gold prices slipped on Tuesday as the US dollar held firm, while investors awaited comments from Federal Reserve Chair Jerome Powell as well as the country's jobs data for further clues about the interest rate outlook.
Spot gold was down 0.2% at $2,326.82 per ounce, as of 0443 GMT. U.S. gold futures fell 0.1% to $2,335.70.
The dollar was supported by rising US yields, making bullion less attractive.
Benchmark 10-year Treasury yields rose to their highest levels since late May on Monday, with analysts attributing the move to expectations of Donald Trump winning the US presidency and raising tariffs and government borrowing.
In order for gold prices to break above the current range, the market needs to see further weak data points that increase the possibility of a Fed rate cut in September, said Kelvin Wong, a senior market analyst for Asia Pacific at OANDA.
Lower rates reduce the opportunity cost of holding zero-yielding gold.
Traders will look for cues on rate cuts when Powell speaks later in the day. Other data points on their radar include ADP employment, ISM services PMI and minutes from the Fed's latest policy meeting, due on Wednesday, as well as the nonfarm payrolls report, scheduled for release on Friday.
U.S. manufacturing contracted in June, while a drop in a measure of prices paid by factories for inputs suggested that inflation could continue to subside.
Spot silver fell 0.5% to $29.29 per ounce, platinum lost 0.3% at $975.22 and palladium firmed 1% to $981.43.
