Focus on U.S. inflation data, ECB policy meet on Thursday
SPDR Gold Trust ETF holdings fall 0.6 on Monday Updates prices
June 8 Reuters Gold fell on Tuesday as a stronger dollar dimmed appetite for bullion, while investors awaited U.S. inflation data for clues on when the Federal Reserve will begin tapering its monetary stimulus.
Spot gold fell 0.3 to 1,893.51 per ounce by 1048 GMT, while U.S. gold futures eased 0.1 to 1,896.30.
The dollar index strengthened 0.2, making gold more expensive for other currency holders.
With gold having faltered at 1,900 a couple of times, its almost certainly going to mean that some people will be trading that range and just coming in and coming out… Its called jobbing the market, said StoneX analyst Rhona OConnell.
Market participants also took stock of U.S. Treasury Secretary Janet Yellens comments that President Joe Bidens 4 trillion spending plan would be good for the U.S., even if it contributes to rising inflation and results in higher interest rates.
On investors radar is the European Central Banks policy meeting on Thursday, the same day that U.S. consumer price index data will be released.
If they inflation figures turn out to be higher than expected once again, the debate about an earlier U.S. Fed exit from its ultraexpansionary monetary policy could flare up again, Commerzbank analyst Carsten Fritsch said in a note.
This would have a negative impact on gold, at least in the short term, as bond yields would also…