Gold retreats with US policy prospects in focus

Gold bars

Gold prices slipped today, June 25, as investors awaited key US economic data due this week to obtain more information about the potential path of US monetary tightening.

Bullion for August delivery plunged by 0.22% to $2,339.20 per ounce at 10:03 am Makkah time, with spot prices also down 0.34% to $2,326.79 an ounce.

On the other hand, silver futures for July delivery advanced 0.14% to $29.56 an ounce, against the backdrop of a 0.74% hike in platinum spot prices to $1,006.13 per ounce.

Today’s drop in the yellow metal’s prices came as the US dollar index, which gauges the greenback's strength against a basket of six currencies, held steady at 105.49 points.

The US dollar had gained ground last Friday with the release of data showing an acceleration in the states’ economic activity in June.

All eyes are on the release of the final reading of the US gross domestic product (GDP) next Thursday, with forecasts suggesting a 1.4% slump on an annual basis, instead of 1.3% in the previous reading.

This is a day before the issuance of the core personal consumption expenditures price index - the Federal Reserve's preferred inflation gauge. Analysts are expecting a 0.1% increase in May, compared to a 0.2% hike in the month before.