Investing.com - Gold prices inched down on Monday, despite a lower U.S. dollar as data supported expectations of a Fed interest rate increase.
Comex gold futures for August delivery decreased 0.15% to $1,239.30 a troy ounce as of 11:18 AM ET (15:18 GMT).
Gold was weighed down by economic data pointing to an increase in Federal Reserve interest rates. Retail sales increased by 0.5% for the fifth month in a row, according to the U.S. Commerce Department.
The Fed raised rates twice this year and is expected to raise rates at least once more before the end of the year.Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.
Investors were also paying attention to any news of the meeting between U.S. President Donald Trump Russian President Vladimir Putin at their one-on-one meeting in Helsinki on Monday.
Meanwhile the dollar was lower. Gold normally rises as the dollar falls, as the precious metal is denominated in the U.S. currency and is sensitive to moves in the dollar.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, inched down 0.14% to 94.00.
Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.
Elsewhere on the Comex, silver futures were down 0.13% to $15.795 a troy ounce. Among other precious metals, platinum slumped 1.11% to $821.20 while palladium decreased 2.03% to $914.30 an ounce. Copper futures lost 0.31% to $2.767 a pound.