By Brijesh Patel and Daksh Grover
June 26 (Reuters) -Gold prices fell 1% to their lowest level in more than two weeks on Wednesday, pressured by a stronger dollar and higher bond yields, as traders awaited U.S. inflation data. United to be published later this week.
* Spot gold fell 0.8% to $2,301.16 an ounce by 1803 GMT, hitting its lowest level since June 10. Gold futures in the United States also closed with a loss of 0.8%, at $2,313.2.
* “At this point, it is very possible that the market is responding to the strength of the US dollar and we continue to value the possibility that the Federal Reserve does not move (interest rates) sooner,” said Bart Melek, chief strategist at commodities from TD Securities.
* The dollar rose 0.4% to a near two-month high against its rivals, making gold more expensive for holders of other currencies, while benchmark US 10-year bond yields hit their highest level in almost two weeks.
* Attention will focus this week on the U.S. personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, which could shed light on the path of the central bank’s interest rates.
* Also on the radar are US gross domestic product estimates for the first quarter and a crucial debate between President Joe Biden and his Republican rival Donald Trump on Thursday.
* Fed Governor Michelle Bowman on Tuesday reiterated her view that keeping the policy rate stable “for some time” will likely be enough to control inflation, but she also reiterated her willingness to raise borrowing costs if necessary. .
* Higher rates increase the opportunity cost of holding bullion, which does not bear interest.
* In other precious metals, spot silver fell 0.1% to $28.88; Palladium fell 2% to $929.25; and platinum gained 3.1%, to $1,011.88.
(Edited in Spanish by Carlos Serrano and Manuel Farías)
