Gold futures settled lower Monday, with investors awaiting cues from the Federal Open Market Committee policy meet on the central bank's future policy on its quantitative easing program, even as the dollar strengthened against a basket of major currencies.
The outcome of the Federal Reserve meeting later this week is expected to end speculations over the quantitative easing program. Last week, speculations were rife that the Federal Reserve may pull back its monetary easing policy with San Francisco Federal Reserve President John Williams indicating the move as early as this summer, and even exit the program by the year end.
Gold for June delivery, the most actively traded contract, shed $6.50 or 0.5 percent to close at $1,377.60 an ounce Tuesday on the Comex division of the New York Mercantile Exchange.
Gold for June delivery scaled an intraday high of $1,399.90 and a low of $1,358.00 an ounce.
Yesterday, gold ended higher on profit taking as investors awaited the outcome of the Federal Open market committee meeting minutes, even as the dollar turned lower.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 83.81 on Tuesday, up from 83.76 late Monday in North American trade. The dollar scaled a high of 84.20 intraday and a low of 83.75.
The euro traded higher against the dollar at $1.2905 on Tuesday, as compared to $1.2882 late Monday in North America. The euro scaled a high of $1.2920 intraday and a low of $1.2842.
In economic news, U.K. consumer price inflation slowed more-than-expected to a seven-month low in April on falling petrol and air fares, official data revealed Tuesday. Annual inflation dropped to 2.4 percent from 2.8 percent in March, while analysts expected inflation to ease 2.6 percent.
Germany's producer price inflation slowed for the third consecutive month in April, data from the Federal Statistical Office showed Tuesday. Producer prices rose only 0.1 percent in April from a year ago, following a 0.4 percent increase in March. This was the lowest annual rate since March 2010. Economists had forecast an increase of 0.2 percent for April. On a monthly basis, producer prices slipped a more-than-expected 0.2 percent, the same rate of decrease as in March. It was forecast to fall 0.1 percent.
Meanwhile, provisional estimates showed the Organization for Economic Cooperation and Development area expanded in the first quarter, with GDP rising 0.4 percent sequentially, after coming in flat a quarter ago.
Real GDP growth accelerated in Japan and the United States to 0.9 percent and 0.6 percent respectively, compared with 0.3 percent and 0.1 percent in the previous quarter. In the United Kingdom and Germany, GDP grew by 0.3 percent and 0.1 percent respectively, rebounding from the contractions of 0.3 percent and 0.7 percent in the previous quarter. The pace of contraction slowed in the euro area to -0.2 percent from -0.6 percent.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.