Ammon News - Gold reversed course after hitting a two-week high ‌earlier on Monday, as the U.S. dollar ticked up in anticipation of the Federal Reserve's last policy meeting minutes due later this week.

U.S. gold futures for August delivery rose 0.8% to $4,160.40 per ounce.

The ⁠U.S. dollar gained 0.2%, making greenback-priced bullion more expensive FOR holders of other ​currencies.

Saxo Bank analyst Ole Hansen said the bullion is in a consolidation phase ​after having risen more than 2% last week and ending a four-week losing streak after weak U.S. job growth data reduced bets for rate hikes.

Traders see about a 56% chance of a ​rate increase in September, down from more than 60% before the data, ​according to the CME FedWatch tool. FEDWATCH/
A further easing in rate hike expectations is needed to support ‌bullion, ⁠which for now continues to consolidate, said Hansen.

Higher interest rates tend to pressure the non-yielding metal.

"Gold is trying to build a base with support in the $3,900-$4,000 range, while numerous levels of resistance await ahead of the big one, which remains ​the 200-day moving ​average at $4,485," said ⁠Hansen.

The Fed's June 16-17 meeting minutes, the first chaired by Kevin Warsh, due on Wednesday, could give traders further insights ​into policymakers' rate outlook.
J.P. Morgan, in a note on Friday, ​said that ⁠demand for gold from key sectors would not be as strong as expected, with prices limited to $4,300/oz in the third quarter and $4,500 in the fourth quarter of ⁠this year.

Among ​other metals, spot silver fell 0.7% to $61.96 per ​ounce after hitting its highest since June 23 earlier.

Platinum declined 0.2% to $1,635.47 per ounce and palladium ​rose 0.1% to $1,275.21 per ounce.