Gold struggles close to 3-week minimum with Fed in focus

On Monday, gold prices extended its losses from the previous trading session in Europe, holding close to a three-week minimum as the American dollar hovered at a more than four-month peak amid renewed hopes for a Fed rate lift later in 2016.  

In New York, August delivery gold futures dipped to a session minimum of $1,313.10 per troy ounce, just above a three-week minimum of $1,310.70.

On Friday, prices dipped 0.57%, as renewed hopes for a Fed rate lift later this year backed the greenback and traders looked to buy into soaring equity markets rather than buying safe-haven assets.

The previous week the number one precious metal dropped 0.26%, the second weekly sink in a row.

A recent string of better than expected American data reignited rumors that the Fed is about to lift interest rates before the end of 2016. Currently, interest rate futures are pricing in a 45% chance of a rate lift by December, compared with less than 20% last week and up from 9% at the beginning of this month.

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