Gold inches lower as firmer bond yields dent appeal
Gold prices fell due to higher U.S. Treasury yields as investors awaited economic data to predict Federal Reserve's interest rate cuts.
edged lower on Monday, weighed down by higher , as market participants looked out for more to gauge when the will start cutting its .FUNDAMENTALS
* Spot gold was down 0.3% at $2,326.78 per ounce, as of 0126 GMT. U.S. gold futures fell 0.3% to $2,341.70.
* Benchmark 10-year U.S. Treasury yields edged up and were last at 4.2402%, making non-yielding less attractive for investors.
* Data released last week showed that consumer prices were unchanged in May for the first time in nearly two years, while producer prices unexpectedly fell.
* However, updated economic projections from Fed officials after a two-day policy meeting - where the central bank kept interest rates steady - showed just one quarter-point cut for this year.
* Minneapolis Fed President Neel Kashkari on Sunday said it's a "reasonable prediction" that the U.S. central bank will cut interest rates once this year, waiting until December to do it.
* Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
* Gold demand in India remained tepid last week despite a recent correction in prices, as buyers postponed purchases in the absence of any major festivals, while premiums in top consumer slid on weak consumer sentiment and elevated spot prices.
* China still has room to lower interest rates, but its ability to adjust monetary policy faces internal and external constraints, the official said, citing industry experts.
* Spot fell 0.3% to $29.46 per ounce, platinum was unchanged at $957.57 and gained 0.5% to $894.37.
DATA/EVENTS (GMT) 0200 China Urban Investment (YTD) YY May 0200 China Retail Sales YY May 0200 China Unemp Rate Urban Area May n/a UK House Price Rightmove MM, YY June.
