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17.06.201914:53:00UTC+00Gold Futures Snap 4-day Winning Run, Settle Marginal Lower

Gold prices edged lower on Monday, snapping a four-day winning streak, after the U.S. dollar strengthened after a weak start.

With the upcoming Federal Reserve's monetary policy meeting in focus, traders were mostly cautious with their moves. They were also tracking news on U.S.-China trade front and about the tensions in Hong Kong.

The dollar index, which dropped to a low of 97.34 early on in the session, rallied to 97.60 subsequently.

Gold futures for August ended down $1.60, or 0.1%, at $1,342.90 an ounce.

On Friday, gold futures for August settled at $1,344.50 an ounce, gaining $0.80 for the session.

Silver futures for July ended up $0.026, at $14.829 an ounce, while Copper futures for July settled at $2.6465 per pound, gaining $0.0170.

The Federal Reserve is scheduled to meet this Tuesday and Wednesday, and it is widely expected that the central bank will hold rates unchanged this month. However, it is likely to hint at a near-term interest rate reduction.

In economic news today, the New York Fed released a report showing a sharp downward turn in regional manufacturing activity in June.

The New York Fed said its general business conditions index plunged to a negative 8.6 in June from a positive 17.8 in May, with a negative reading indicating a contraction in manufacturing activity. Economists had expected the index to drop to a positive 10.0.

With the much record-setting monthly decrease, the general business conditions index recorded its first negative reading in over two years.

A separate report from the National Association of Home Builders showed an unexpected pullback in homebuilder confidence in the month of June.

The report said the NAHB/Wells Fargo Housing Market Index dropped to 64 in June after jumping to 66 in May. The decrease surprised economists, who had expected the index to inch up to 67.

In trade-related news, U.S. Commerce Secretary Wilbur Ross reportedly told CNBC that President Donald Trump is is "perfectly happy" to impose tariffs on the remaining $300 billion of Chinese imports of the two superpowers fail to agree a deal.

Ross also said that Trump is giving "very serious thought" to slapping tariffs on all auto imports, including those from the European Union.



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