Gold hurt by dollar rebound; traders eye key data for Fed rate cut timing

Gold prices declined for the third consecutive day due to a strengthening U.S. dollar before the release of crucial economic data that will impact investors’ perspective on the timing of interest rate cuts by the Federal Reserve. Spot gold dropped 0.1% to $2,026.71 per ounce, while U.S. gold futures fell 0.4% to $2,035.90 per ounce. The dollar index increased 0.3%, making gold less attractive to holders of other currencies. The market is waiting for U.S. GDP data and the core personal consumption expenditures (PCE) price index. Bets of a Fed rate cut have been pushed to June. Fed Governor Michelle Bowman noted the central bank’s patient stance on easing.