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Gold prices steadied in choppy trading on Monday, with gains curbed by a stronger dollar and an uptick in U.S. Treasury yields, while investors awaited speeches from Federal Reserve policymakers for more clues on the tapering strategy.

· Spot gold was little changed at $1,752.19 per ounce by 01:35 p.m. EDT.

· U.S. gold futures settled mostly unchanged at $1,752.

· “We’re still having some concerns out there that is keeping the safe haven bid alive on dips. But we continue to see the dollar making gains and keeping a little bit of pressure on the commodities complex, most notably gold,” said David Meger, director of metals trading at High Ridge Futures.

“Every time we have any Fed officials speak, we’re looking to get some more information. At this point, the expectation is that in next meeting they’re (Fed) going to announce some type of taper,” Meger said.

· The dollar was up 0.1% against its rivals, making gold more expensive for other currency holders, while benchmark 10-year U.S. Treasury yields rose to their highest level in three months.

· SPDR GOLD HOLDINGS:

SELL NEARLY 10 TONNES IN THIS MONTH!

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 3.2 Tonnes to 990.32 tons on Monday from 993.52 tons on previous session.

Overall, the holdings of SPDR decline 9.94 tonnes in this month, but this year net sell 180.42 tonnes.

· Market focus will now be on speeches by Fed officials this week including Chair Jerome Powell, who will testify before Congress on the central bank’s policy response to the pandemic.

· Gold is often considered a hedge against higher inflation, but a Fed rate hike would increase the opportunity cost of holding gold, which pays no interest.

· Investors were also keeping an eye on developments surrounding debt-laden China Evergrande, after the Chinese property giant missed a bond payment deadline last week.

· “With downside momentum seemingly slowing, gold could see some reprieve in the near-term but the broader outlook isn’t great,” OANDA analyst Craig Erlam said in a note.

· Elsewhere, silver rose 1.1% to $22.66 per ounce.

· Platinum eased 0.2% to $979.82, and palladium fell 0.1% to $1,970.

· Cryptocurrencies see sixth straight week of inflows, led by bitcoin -CoinShares data

· Strong U.S. business spending on equipment seen underpinning GDP growth in Q3

New orders and shipments of key U.S.-made capital goods increased solidly in August amid strong demand for computers and electronic products, keeping business spending on equipment on track for another quarter of robust growth.

Durable goods orders surge 1.8%; unfilled orders up 1.0%

Data for July was revised higher to show these so-called core capital goods orders gaining 0.3% instead of the previously reported 0.1%. Economists polled by Reuters had forecast core capital goods orders increasing 0.4%.

Orders shot up 16.4% on a year-on-year basis and are 18% above their pre-pandemic level. That is boosting manufacturing, which accounts for 11.9% of the economy, though an acute shortage labor as well as raw materials such as semiconductors are making it harder for factories to fulfill orders.

· Senate GOP blocks bill that would fund government and suspend debt limit, as time runs short to avoid shutdown and default

· Fed Chair Powell to warn Congress that inflation pressures could last longer than expected

Federal Reserve Chairman Jerome Powell, in remarks to be delivered Tuesday, cautioned Washington legislators that the causes of the recent rise in inflation may last longer than anticipated.

In a speech that he will deliver to the Senate Banking Committee, the central bank chair said economic growth has “continued to strengthen” but has been met with upward price pressures caused by supply chain bottlenecks and other factors.

“Inflation is elevated and will likely remain so in coming months before moderating,” Powell said. “As the economy continues to reopen and spending rebounds, we are seeing upward pressure on prices, particularly due to supply bottlenecks in some sectors. These effects have been larger and longer lasting than anticipated, but they will abate, and as they do, inflation is expected to drop back toward our longer-run 2 percent goal.”

The remarks are part of mandated testimony Powell must give to Congress regarding the Fed’s economic response to the Covid-19 pandemic. He will speak Wednesday to the House Financial Services Committee.

· Fed's Powell: Reopening economic bottlenecks could be "more enduring"

· New York Fed’s Williams cautions of debt-ceiling risk to markets

New York Federal Reserve Bank President John Williams on Monday warned of the potential negative market reaction if the United States failed to solve its debt-ceiling issue, but said market participants right now seemed to think the problem would be resolved.

The U.S. Congress faces a pair of approaching deadlines to fund the government and address the nation's $28.4 trillion debt ceiling. read more It has a Sept. 30 deadline to avert the start of a shutdown of government services.

Meanwhile, independent analysts warn that the U.S. Treasury Department is likely to exhaust its borrowing authority between Oct. 15 and Nov. 4, meaning the government faces the risk of a default if Congress does not act.

· Fed's Evans sees taper close, expects rate hike in 2023

The U.S. economy will soon meet the Federal Reserve's bar for beginning to reduce its bond purchase program, Chicago Fed President Charles Evans said on Monday, but it will be late 2023 before an interest rate hike is warranted.

Fed's Evans sees 2.4% inflation in 2024, 'gentle incline' in rates

· Fed's Brainard: No liftoff signal should be taken from taper announcement, spike inflation this year is “Transitory”

U.S. employment is “still a bit short of the mark” for the Federal Reserve to taper, Fed Governor Lael Brainard said on Monday in remarks highlighting the risk that a resurgent pandemic may continue to thwart hiring into the fall.

Brainard said she agreed that if hiring continues “as I hope,” the economy “may soon meet the mark” that would warrant scaling back the Fed’s $120 billion in monthly bond purchases.

· Fed will allow labor markets to 'run their course': Bostic

Atlanta Federal Reserve Bank President Raphael Bostic on Monday reiterated the U.S. central bank’s commitment to making sure every American who wants a job can have one.

· Fed’s highest priority is to get people back to work: Kashkari

The Federal Reserve’s “highest priority” is to make sure millions of Americans now out of a job can get back to work, Minneapolis Federal Reserve Bank President Neel Kashkari said in a speech taped Friday and released Monday.

· Fed Officials Under Fire for 2020 Securities Trading Will Resign

Robert S. Kaplan will exit his role as head of the Federal Reserve Bank of Dallas next month. Eric S. Rosengren, the head of the Federal Reserve Bank of Boston, is also retiring earlier than planned.

- Eric S. Rosengren, the president of the Boston Fed, will retire this Thursday, accelerating his planned retirement by nine months.

- Dallas Fed President Kaplan to retire early on Oct. 8, citing trading disclosure ‘distraction’

Dallas Federal Reserve President Robert Kaplan became the second regional central bank leader to resign Monday, saying he was stepping down early following a recent controversy over stock market trades he made.

· ECB's Lagarde keeps door open to higher inflation

Inflation in the euro zone could exceed the European Central Bank's already raised projections but there are few signs of this already happening, ECB President Christine Lagarde said on Monday.

Lagarde stuck to the ECB's official view that inflation will ease back below 2% next year but seemed to acknowledge growing concerns, including inside the central bank, that higher price growth might be here to stay.

· ECB member says the central bank needs to be ‘even more conservative’

The European Central Bank needs to be “even more conservative” in how it reacts to inflation in order to avoid repeating past mistakes, Governing Council Member Mario Centeno has told CNBC.

The central bank is currently under some pressure given that consumer prices have spiked in recent months. Euro zone inflation hit a 10-year high in August, coming in at 3% from a year ago.

· BoE's Bailey sees growing case for interest rate rise

Bank of England Governor Andrew Bailey said on Monday that he and other members of the Monetary Policy Committee saw a growing case to raise interest rates, echoing a statement published by the central bank after last week’s policy decision.

· U.S., EU to discuss global trade and tech cooperation as they seek to counter China

Top-level officials from the U.S. and European Union will meet Wednesday to discuss several major economic and technological challenges facing the trans-Atlantic alliance as China’s ambitions increasingly shape global markets.

Secretary of State Antony Blinken, Secretary of Commerce Gina Raimondo and United States Trade Representative Katherine Tai will represent the Biden administration at the inaugural U.S.-EU Trade and Technology Council, or TTC, in Pittsburgh, Pennsylvania.

Biden’s team will meet with European Commission Executive Vice Presidents Margrethe Vestager and Valdis Dombrovski.

· COVID-19 UPDATES:

· Up to 90% of Americans may have some form of Covid immunity after delta wave, Dr. Gottlieb says

Dr. Scott Gottlieb told CNBC’s Jim Cramer on Monday he believes up to 90% of U.S. residents will have some form of immunity protection against the coronavirus by the time the delta variant wave passes.

In an interview on “Mad Money,” the former Food and Drug Administration commissioner said reaching that amount of coverage is important, even if the country never fully eradicates the disease.

Reference: New York Times, CNBC, Reuters, FXStreet, Worldometers