Investing.com - Gold prices edged lower on Monday, kicking the week off with modest losses as investors awaited fresh signals about the timing of the next U.S. interest rate increase this year.
Comex gold futures dipped $2.50, or around 0.2%, to $1,248.65 a troy ounce by 2:45AM ET (06:45GMT). Meanwhile, spot gold was down $2.30 at $1,246.80.
Also on the Comex, silver futures for May delivery shed 5.3 cents, or about 0.3%, to $18.20 a troy ounce.
Global financial markets will focus on Wednesday’s minutes of the Federal Reserve’s latest policy meeting for further hints on the timing of the next U.S. rate hike.
There are also a few Fed speakers in the coming week, with New York Fed President William Dudley, Philadelphia Fed President Patrick Harker and Richmond Fed President Jeffrey Lacker all set to speak Monday. Dudley is on tap again on Friday.
Investors will also keep an eye on key U.S. economic data, with Friday's monthly employment report in the spotlight.
Besides the employment report, this week's data-heavy calendar also features reports on U.S. auto sales, construction spending and ISM manufacturing on Monday; trade figures and factory orders on Tuesday; ADP private sector nonfarm payrolls and the ISM non-manufacturing survey on Wednesday; weekly jobless claims on Thursday, followed by wholesale inventories and consumer credit on Friday.
The U.S. central bank raised its benchmark interest rate by 25 basis points following its meeting on March 15 and stuck to its projection for two more hikes this year.
Market experts do not expect the Fed to raise interest rates again until June. Futures traders are pricing in around a 50% chance of a hike at the Fed's June meeting, according to Investing.com’s Fed Rate Monitor Tool. Odds of a September increase was seen at about 75%.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Headlines from Washington will also be in focus, as traders await further details on President Donald Trump's promises of tax reform and infrastructure spending.
A meeting between Chinese President Xi Jinping and President Trump at his Mar-a-Lago retreat on Thursday and Friday will also be on investors' radar.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.1% at 100.33 in London morning trade.
Elsewhere in metals trading, platinum tacked on 0.4% to $955.60, while palladium added 0.3% to $800.25 an ounce.
May copper futures ticked up 0.4 cents to $2.656 a pound.