* SPDR Gold holdings rise 0.6% on Monday
* Dollar rises to highest level in over a month
* Market eyes Fed policy meeting on July 30-31
By Karthika Suresh Namboothiri
July 23 (Reuters) - Gold inched down on Tuesday to its lowest level in a week as a robust dollar offset weak U.S. economic data, and investors awaited clearer signals on the Federal Reserve's trajectory for interest rates.
Spot gold XAU= was down 0.3% at $1,420.45 per ounce as of 13:47 p.m EDT (1747 GMT), having touched its lowest since July 17 at $1,413.80 earlier in the session. U.S. gold futures GCcv1 settled 0.4% lower at $1,421.70.
Gold briefly pared losses following weaker-than-expected U.S. home sales and monthly manufacturing data from the Richmond Fed. Richmond print raised a few eyebrows, though it's really not that important of a figure, but seemed to have triggered some buying," said Tai Wong, head of base and precious metals derivatives trading at BMO.
"Gold is likely to stay within the $1,415-35 range with the market getting all bulled up above $1,430 and hand-wringing below $1,420."
The dollar rose to its highest in more than a month .DXY , supported by a deal to extend the U.S. government's debt limit, making greenback denominated assets such as gold costlier for investors holding other currencies. USD/ seen a sharp upward move over the past weeks in gold. The momentum seems to have been lost and some short-term investors have looked to take those healthy profits ahead of the U.S. Federal Reserve decision next week," said Capital Economics analyst Ross Strachan.
Investors are eyeing the Fed's July 30-31 policy meeting at which it is expected to cut its overnight benchmark lending rate. The European Central Bank (ECB) is also expected to signal easier monetary policy when it meets on Thursday.
The repricing among investors in favor of a 25-basis-point Fed rate cut instead of a 50-point cut is constraining gold, said Ryan McKay, a commodity strategist at TD Securities.
Among other precious metals, silver XAG= rose 0.5% to $16.42 an ounce.
"Silver has authenticated gold's rally. ... What this has done is put the gold-silver ratio down to a level which you might not ordinarily expect, just below 87," said Ross Norman, chief executive of bullion dealer Sharps Pixley.
Holdings of the largest gold-backed ETF, New York's SPDR Gold Trust, rose 0.6% on Monday from Friday, while the largest silver-backed ETF, the iShares Silver Trust SLV , rose 2.6% during the same period.
Holdings in the silver ETF have risen about 10% so far this month. GOL/ETF
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.