· Gold prices fell on Tuesday as the U.S. dollar was firm for much of the session and precious metals investors turned cautious ahead of central bank meetings this week, U.S. payrolls data and the announcement of the next U.S. Federal Reserve chair.
· Spot gold slipped 0.4 percent to $1,270.40 an ounce by 2:40 p.m. EDT (1840 GMT), headed for a second-straight monthly decline.
U.S. gold futures for December delivery settled down $7.20, or 0.6 percent, at $1,270.50 per ounce, a 1 percent monthly decline.
· The dollar was flat, initially underpinned by solid U.S. data, but on track for its second straight monthly increase.
· The Fed started a two-day policy meeting during Tuesday's session with speculation mounting that Trump will pick Fed Governor Jerome Powell as the next head of the U.S. central bank on Thursday.
· "Somebody from within the Fed, even if they’re more dovish, might be less bullish for gold, because they would be seen as being better suited to manage monetary policy," said Jeffrey Christian, managing partner of CPM Group in New York.
· The Fed is scheduled to release its statement following its meeting on Wednesday at 2 p.m. EDT.
· Market participants were awaiting the Bank of England policy meeting on Thursday and more data, including U.S. payrolls figures on Friday.
· Meanwhile, global equities were heading for a record 12th month of gains as a 5-1/2-month high in European stocks and records elsewhere underscored one of the most robust bull markets on record.
· Rising equity markets usually indicate confidence in economic growth, which reduces gold's appeal as a safe-haven asset.
· "The market is catching its breath for what will be a very data-heavy second half of the week," said Jeffrey Halley, a senior market analyst with OANDA.
"Gold itself appears to have lost any risk-aversion premium for now and is thus completely at the mercy of the nuances of the U.S. bond and stock market, and by default the U.S. dollar."
· Among other precious metals, silver fell 0.7 percent to $16.71 an ounce, but headed toward a 0.5 monthly increase. Platinum dipped 0.1 percent to $915.24 an ounce, though poised for a nearly 0.8 percent monthly increase. Palladium climbed 1.6 percent to $980 an ounce, on track for a 4.8 percent monthly gain.
Reference: Reuters
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