Gold ticks lower on firmer dollar, central bank meetings in focus

Gold prices edged lower in early Asian trade on Monday as the dollar held firm and investors positioned for a series of major central bank policy meetings this week, with a likely pause in interest rate hikes by the U.S. Federal Reserve.

FUNDAMENTALS

* Spot gold was down 0.1% to $1,957.92 per ounce by 0033 GMT. U.S. gold futures fell 0.2% to $1,972.60.

* Gold prices climbed 0.7% for the week ended Friday, helped by a more than 1% jump on Thursday after a surge in U.S. weekly jobless claims.

* Focus now turns to the release of U.S. consumer price index (CPI) and producer price index (PPI) data on Tuesday and Wednesday, respectively.

* Fed fund futures show a 71.2% probability that the U.S. central bank will keep its benchmark overnight interest rate in the 5.00%-5.25% range when its two-day meeting ends on Wednesday.
* Safe-haven gold tends to gain during times of uncertainty, while lower rates also lift the appeal of the zero-yield asset. * At a two-day policy meeting ending on June 16, the Bank of Japan is expected to maintain ultra-loose monetary policy and its forecast for a moderate economic recovery, as robust corporate and household spending cushion the blow from slowing overseas demand, sources said.

* Physical gold demand slowed in China and India last week, forcing dealers to offer discounts, with volatile prices in India prompting buyers to delay purchases. [GOL/AS]

* SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.31% to 931.76 tonnes on Friday from 934.65 tonnes on Thursday.

* Spot silver was down 0.2% to $24.2274 per ounce, platinum shed 0.3% to $1,005.49.

* Palladium was flat at $1,322.88 after shedding more than 4% on Friday.