Shafaq News/ Gold prices edged higher in early Asian trade on Monday, helped by a weaker U.S. dollar, although chances of more interest rate hikes by the Federal Reserve this year to tame sticky inflation weighed on bullion's appeal.
FUNDAMENTALS
* Spot gold XAU= rose 0.3% to $1,926.29 per ounce by 0051 GMT. U.S. gold futures GCcv1 were up 0.3% at $1,936.10 per ounce
* The dollar index .DXY was down 0.2%, making gold more attractive for buyers holding other currencies.
* Bullion fell 1.8% in the previous week on hawkish comments from several Fed officials.
* In his congressional testimony last week, Fed Chair Jerome Powell signalled more rate hikes ahead but vowed the central bank would proceed with caution.
* San Francisco Fed Bank President Mary Daly said on Friday two more rate hikes this year is a "very reasonable" projection.
* Investors now expect a 72% chance of a rate hike in July, with rate cuts seen from 2024 onwards.
* U.S. business activity fell to a three-month low in June as services growth eased for the first time this year, yet economic growth ticked up a notch in the second quarter.
* Elsewhere, Japan's top currency diplomat Masato Kanda said the country would not rule out any options available to respond to currency moves, stepping up warnings against recent yen weakening that was "rapid and one-sided."
* Stocks slipped and oil rose as investors figured an abortive weekend mutiny by Russian mercenaries raised questions about stability and crude supply. MKTS/GLOB
* Spot silver XAG= rose 0.7% to $22.57 per ounce, while platinum XPT= gained 0.8% to $924.13.
* Palladium XPD= rose 1% to $1,297.63. The metal had hit a four-year low of $1,269.09 an ounce on Thursday.
