Gold moves in negative zone ahead of important US data

Gold prices fell in European trade today, resuming losses after a two-day hiatus away from two-month lows, as dollar currently strengthens. 

The precious metal is moving in a negative zone ahead of important US data later this week, which will help determine the path ahead for US monetary policies. 

Gold Prices Today

Gold prices fell 0.5% to $1,953 an ounce, after rising 0.2% yesterday, the second profit in a row away from two-month lows at $1,932. 

Gold prices were slightly boosted recently after less bullish remarks by Fed officials, which changed pricing for US interest rates in June. 

Gold prices are down 1.4% in May, the first monthly loss in three months on profit-taking off recent record highs, as dollar strengthened, and US treasury yields surged. 

The Dollar

The dollar index rose 0.3% on Thursday, maintaining gains for the second session and almost  touching 11-week highs at 104.69 against a basket of major rivals. 

A stronger dollar makes dollar-denominated gold futures costlier to holders of other currencies.

US Debt Ceiling 

US House of Representatives voted in favor of raising the US debt ceiling level from the current $31.4 trillion level, with the law now sent to the Senate for final approval. 

Fed Remarks

Federal Reserve member Philip Jefferson said it's likely the Fed will maintain rates unchanged at the June meeting.

Philadelphia Fed President Philip Jefferson said he prefers for the Federal Reserve to stop raising interest rates at the next meeting as rates approach neutrality. 

Fed Rates

Such remarks drove odds for a 0.25% Fed rate hike in June from 65% to 37%.

Investors also await a batch of important US data later today, including private sector employment data, and unemployment claims data.

The SPDR

Gold holdings at the SPDR Gold Trust remained flat at 939.56 tones yesterday, the lowest since May 17.