Gold prices fell in European trade on Monday, resuming loss after a short hiatus in recent sessions away from a two-week trough, with prices pressured by a stronger dollar.
However, gold is still heading for a monthly profit amid hopes for the Federal Reserve and the ECB ending the current cycle of policy tightening as inflation calms down.
Gold Prices Today
Gold prices fell 0.3% to $1,953 an ounce, with a session-high at $1,960, after rising 0.7% on Friday, away from a two-week trough at $1,942 an ounce.
The Dollar
The dollar index rose 0.1% on Monday, maintaining gains for the third straight session and hovering near a three-week high at 102.04 against a basket of major rivals, in turn pressuring gold prices and dollar-denominated commodities.
Monthly Trading
Gold prices are up 1.75% so far in July on track for the first monthly profit in three months as haven demand increased.
Central Banks
Recent policy meetings by the Federal Reserve and the European Central Banks raised hopes for an end to the current cycle of policy tightening as inflationary pressures decline.
Fed Chair Jerome Powell said the bank is monitoring economic data to gauge the impact of recent policy decisions before the September meeting.
ECB President Christine Lagarde also said the decision to hike or maintain interest rates at the September meeting hinges on data.
