Mubasher: Gold prices remained pressured on Monday after easing from the highest level seen since 14 months in the preceding session, as the dollar hovered near multi-week highs on strong data from the US, ahead of a policy meeting by the Federal Reserve this week, Reuters reported.

By 8:20 am GMT, spot gold fell by 0.48% to $1,335.22 per ounce, after clocking $1,358.04 per ounce, the highest seen since 11 April 2018, while US gold futures dropped by 0.49% to $1,337.90 per ounce.

“For now, gold prices are holding tight, [as] the markets have aggressively priced in rate-cut expectations and trade uncertainties have boosted safe-haven assets,” Singapore-based Phillip Futures analyst Benjamin Lu was quoted by Reuters.

CME Group’s FedWatch said on Thursday that forecasts of an interest rate cut at the Fed’s meeting to be held on 18 and 19 June, have declined to 21.7% from 28.3% after official data showed that US retailers posted a strong sales growth last May.

Stronger retail sales suggested a pick-up in consumer spending that could mitigate worries over an economic slowdown in the second quarter.

Nevertheless, wagers of a monetary-easing decision at the July meeting remained high at 85%.

A stronger US dollar dragged the yellow metal down, having stood near a two-week peak on Monday.

At 8:21 am GMT, the US dollar index, which traces the greenback against six key rivals, went down by 0.05% to 97.52.

That said, US Trade Representative’s Office on Monday will start seven-day testimony from retailers, manufacturers and other sectors about President Donald Trump’s decision to levy tariffs on another $300 billion worth of Chinese imports.

“US-China trade tension is supportive factor for the gold market, the unresolved trade dispute and any escalation is likely to increase demand for gold,” CMC Markets chief strategist Michael McCarthy was quoted by the news agency.