- Gold prices fell on global stock exchanges during early trading today, Tuesday, as investors await key US inflation data due out this week, which may shed some light on the Federal Reserve's stance on cutting interest rates.
- Spot gold fell 0.2% to $2,327.52 an ounce, while U.S. futures fell 0.2% to $2,339.90 an ounce.
- The yellow metal fell more than 1% on Friday as the dollar jumped after U.S. business activity rose to a 26-month high in June amid a rebound in hiring.
- U.S. first-quarter GDP estimates are due on Thursday, and the personal consumption expenditures price index report is due on Friday.
- Lower interest rates reduce the opportunity cost of holding non-yielding gold.
- San Francisco Federal Reserve President Mary Daly said on Monday she did not think the U.S. central bank should cut interest rates until policymakers were confident that inflation was heading toward 2 percent, but she also noted that rising unemployment was a growing risk.
- Among other precious metals, spot silver fell 0.5% to $29.47 an ounce, platinum rose 0.5% to $999.70, and palladium rose 1.5% to $993.83 after hitting a one-month high on Friday.
