Gold prices inched higher on Monday as the dollar weakened after hitting a five-week high against major peers earlier in the session.
Spot gold rose 0.3 percent to $2,016.55 per ounce, while U.S. gold futures were marginally higher at $2,021.20.
The upside remained capped in the wake of hawkish comments from Fed officials.
Chicago Fed President Austan Goolsbee said in PBS interview that the U.S. central bank is trying to slow inflation without sending the economy into a recession.
Goolsbee’s comments followed those of Fed Governor Michelle Bowman who warned there is no ‘consistent evidence’ that inflation is under control.
Investors also looked for progress in U.S. debt ceiling talks.
U.S. President Joe Biden said Sunday he remains “optimistic” about finding an agreement with his Republican opponents to raise the U.S. debt limit and avoid a default.
Talks between Biden and lawmakers are likely to resume on Tuesday, after getting postponed on Friday.
This week’s trading may be impacted by reaction to the latest U.S. economic data, including reports on retail sales, industrial production, housing starts and existing home sales.
Traders also await speeches from several Fed officials, including Fed Chair Jerome Powell’s speech on Friday, heading to the Fed’s June meeting.
Chinese data on industrial production, retail sales and fixed asset investment are due on Tuesday.
The euro was trading higher after the European Commission, the executive arm of the EU, said that Eurozone economic growth will be faster than previous forecast this year and next.
In its regular forecast for the 20 countries that share the euro, the EU executive also raised its forecasts for inflation in the region and warned of tighter financing conditions.
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