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Gold slips to lowest in 4 weeks ahead of busy week of Fed speakers

Published 19/06/2017, 08:08
© Reuters.  Gold falls to four-week low
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Investing.com - Gold prices fell to the lowest level in around four weeks in European trade on Monday, as investors looked ahead to a busy week of Federal Reserve speakers for more clues on future monetary policy moves.

Comex gold futures were at $1,253.74 a troy ounce by 3:05AM ET (0705GMT), down $2.70, or around 0.2%. Prices fell to $1,252.20 in overnight trade, a level not seen since May 24.

Gold prices lost $13.20, or roughly 1.2%, last week, the second weekly decline in a row, after the Fed raised interest rates and kept the door open for another hike in 2017.

Also on the Comex, silver futures were down 5.7 cents, or around 0.3%, to $16.60 a troy ounce, after hitting its lowest since May 19 at $16.58.

New York Fed Chief William Dudley will kick off the full week of Fedspeak on Monday, giving a talk to business and community leaders in Plattsburgh, New York at 8:00AM ET (1200GMT).

Later in the global day, Chicago Fed President Charles Evans will speak about current economic conditions and monetary policy at an event in New York City.

On Tuesday, Fed Vice Chair Stanley Fischer, Boston Fed President Eric Rosengren and Dallas Fed President Rob Kaplan are scheduled to deliver comments.

Fed Governor Jay Powell is due to speak before the Senate Banking Committee on Thursday.

Finally, Friday sees St. Louis Fed President James Bullard, Cleveland Fed President Loretta Mester and Fed Governor Powell make public remarks.

Last week, the Fed raised interest rates as widely expected and maintained plans to go ahead with another rate hike by year-end. The central bank also provided greater detail about how it plans to reduce its massive $4.5 trillion balance sheet.

Despite the Fed's relatively hawkish message, market players remained doubtful over the central bank's ability to raise rates as much as it would like before the end of the year due to a recent run of disappointing U.S. economic data.

Futures traders are pricing in less than a 15% chance of a hike at the Fed's September meeting, according to Investing.com’s Fed Rate Monitor Tool. Odds of a December increase was seen at about 35%.

Meanwhile, market players geared up ahead of Brexit negotiations between the U.K. and the European Union and kept an eye on a deadly attack on worshipers leaving a mosque in London.

Among other precious metals, platinum was little changed at $926.60, while palladium shed 0.3% to $862.92 an ounce.

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