Gold prices fell on Monday as traders awaited more U.S. economic data, while reports last week showed inflation was stabilizing, raising expectations that the Federal Reserve will cut interest rates later in the year.
Update prices
Spot gold was down 0.5 percent at $2,321.11 an ounce by 0546 GMT, after rising more than 1 percent on Friday. U.S. gold futures were down 0.6 percent at $2,335.30 an ounce.
U.S. retail sales data is due Tuesday, weekly jobless claims data is due Thursday and preliminary readings of the purchasing managers' indexes are due Friday. Several Federal Reserve officials are also scheduled to speak this week.
Data released last week showed some weakness in price pressures in the United States, suggesting that the labor market is losing momentum and keeping hopes of a September interest rate cut alive.
According to the CME FedWatch tool, traders are now expecting a 68 percent chance of a rate cut in September, compared with a 63 percent chance before Thursday's producer price data.
Lower interest rates reduce the opportunity cost of holding the non-yielding yellow metal.
Among other metals, spot silver fell 1.4 percent to $29.13 an ounce, platinum fell 0.5 percent to $953.30, and palladium lost 0.1 percent to $889.21.
