.png)
Bullion got some support earlier in the session as Asian stocks wobbled and were headed for a monthly loss.
The safe haven asset has been under pressure over the past couple of weeks as senior U.S. central bank officials, including Fed chief Janet Yellen, indicated that a rate rise may be on the cards sooner rather than later.
St. Louis Fed President James Bullard said on Monday global markets appear to be "well-prepared" for a summer interest rate hike from the Fed, although he did not specify a date for the policy move.
Bullion has fallen about 6.2 percent so far in May, its biggest monthly fall since November.
"The precious complex continues to be under pressure albeit with some positive technical support now flowing through," said MKS Group trader James Gardiner.
The dollar hovered near its highest in two months against a basket of currencies on Tuesday on growing expectations of an imminent U.S. rate hike.
U.S. non-farm payrolls data for May is due on Friday and a solid reading could heighten expectations for a June rate rise.
Investors will also be looking out for trading cues from data on U.S. personal income and consumer confidence, due later in the day.
Gold prices are attempting an intraday recovery alongside a pullback in the US Dollar in a move that seems to reflect moderating Fed rate hike bets. Follow-through is far from secure however as the Fed’s preferred PCE inflation gauge crosses the wires.
The core year-on-year inflation rate is expected to remain unchanged at 1.6 percent. A recent run of better-than-expected economic releases hints analysts’ models may be underestimating performance however, opening the door for an upside surprise. Such an outcome is likely to boost near-term tightening speculation, sending the greenback higher and pressuring the yellow metal.
GOLD TECHNICAL ANALYSIS – Gold prices are attempting to launch a rebound after posting the ninth consecutive daily loss. A push above channel floor support-turned-resistance at 1231.48 targets the 23.6% Fibonacci retracementat 1242.88. Alternatively, a drop through support at 1205.30, the 38.2% level, paves the way for a test of the 50% Fibat 1174.93.
Reference: Reuters, DailyFX
Thai
Eng