Investing.com - Gold prices were little changed in holiday-thinned trade on Monday, as traders continued to mull the timing of a Federal Reserve rate hike.
Activity was likely to remain thin on Monday, as markets in the U.K., U.S. and Germany are all shut for public holidays.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery tacked on $1.00, or 0.08%, to trade at $1,205.90 a troy ounce during European morning hours. Futures held in a tight range between $1,203.30 and $1,206.20.
On Friday, gold fell to $1,201.90, the weakest level since May 13, before ending at $1,204.90, down 20 cents, or 0.02%. Futures were likely to find support at $1,191.50, the low from May 13, and resistance at $1,225.50, the high from May 19.
Also on the Comex, silver futures for July delivery inched up 3.6 cents, or 0.21%, to trade at $17.08 a troy ounce. Silver closed at $17.05 on Friday, down 8.1 cents, or 0.47%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.1% at 96.35 early Monday, after hitting an intraday peak of 96.53, the strongest level since April 28.
The greenback strengthened after Fed Chair Janet Yellen said on Friday that interest rates will be raised later in the year. After that, future rate hikes will be small and gradual over the next several years, Yellen added.
The dollar had also been boosted on Friday after stronger-than-expected U.S. inflation data supported the case for a rate hike later this year.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Elsewhere in metals trading, copper for July delivery dipped 0.4 cents, or 0.16%, to trade at $2.807 a pound. Futures touched $2.789 on Friday, the lowest level since April 30, before settling at $2.811, down 3.7 cents, or 1.32%.
Meanwhile, concerns over the prospects of a Greek default continued to dominate market sentiment ahead of a critical June 5 deadline for Athens to reach a deal with its creditors.
Greece is scrambling to reach an agreement with its international lenders over economic reforms they say must be implemented before the final €7.2 billion tranche of the country's €240 billion bailout is released.
The debt-strapped nation is due to make a €305 million payment to the International Monetary Fund on June 5, but will default if a deal is not reached by then.