Spot gold was down 0.2 percent at $1,320.33 an ounce at 1149 GMT, while USA gold futures for December delivery were down $3.7 an ounce at $1,323.40.
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Monday, the stock market rebounded after economic data showed that US consumer spending increased for a fourth straight month in July, partially due a strong demand for automobiles.
Gold slid to a near five-week low on Monday after comments from top Federal Reserve officials fuelled speculation that USA interest rates would rise sooner rather than later, boosting the dollar.
“Fischer confirmed the broad view on the Fed Open Market Committee that the economy has strengthened of late and that interest rates should be raised gradually; possibly again next month if this week’s employment report supports a rate rise”, said Stewart Richardson, chief investment officer at RMG Wealth Management.
The US dollar traded mixed against other major currencies as investors were digesting the recent remarks by Federal Reserve Janet Yellen and newly-released economic data from the country.
Federal Reserve: Yellen told a conference of central bankers in Jackson Hole, Wyoming, last week that the USA economy might be strong enough for an interest rate hike.
Friday’s monthly U.S.jobs data was expected to be the next gauge for the timing of a Fed hike.
The dollar index, which measures the greenback against a basket of six major rivals, strengthened to a almost three-week high of 96.047 as investors looked ahead to Friday’s jobs data.
A report from the U.S. Commerce Department showed consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose for a fourth month in July. But that set off speculation among investors about an interest rate hike later this year, and that in turn set off worries about global growth.
Financials .SPSY , a sector that has underperformed most of the year, was the best performer on the S&P 500, with Wells Fargo WFC.N up 2.2 percent. The Nasdaq Composite was down 9.62 points, or 0.18 percent, at 5,222.71.
The dollar climbed to 102.16 yen on Monday in Tokyo from 101.77 yen in NY and 100.48 yen in Tokyo earlier Friday.
US government bond prices rose. The Tokyo market was an exception and gained on prospects for a strong dollar.
West Texas Intermediate slid 1.7 percent to $46.85 and Brent shed 1.4 percent to $49.21.
U.S. Treasury yields were little changed as traders awaited the U.S.jobs data.
North American stock markets planted themselves into positive territory Monday, as investors seemed unfazed by recent signs that the U.S. Federal Reserve may be getting ready to hike interest rates.
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Gold’s volatility tracked fluctuations in the dollar.
