Gold slipped lower to around the $2,320 area after retreating from two-week highs around $2,368 during early Asian trading this week.
A stronger than expected US Purchasing Managers' Index (PMI) last Friday has given 'false hope' to investors of the yellow metal.
Meanwhile, the price of gold is now at $2,325.59 which is up by 0.16% since it opened in the early morning of the Asian trading session.
For now, the final readings of the US Gross Domestic Product (GDP) and Core Personal Consumption Expenditure (PCE) reports will be in focus this week.
Since June, US economic data has continued to show mixed signals. S&P Global recently showed that the US composite PMI rose to an expected 54.6 from 54.5 during May.
The Manufacturing PMI rose to 51.7 in June from 51.3 in May, beating estimates of 51.0. Meanwhile, the Services PMI increased to 55.1 from 54.8 above consensus at 53.7.
In addition, some Fed officials rejected forecasts of the first interest rate cut this year.
Richmond Fed President Tom Barkin said last week that the central bank is in a good position with the current economic situation. However, they still need to be prepared for any possibility of future economic data.
Minneapolis Fed President Neel Kashkari said it would take a year or two to get inflation back to 2%.
Stronger and hawkish US economic data by the Fed will continue to support the US dollar and weaken gold movements. Higher interest rates generally affect gold prices because they increase the opportunity cost for holders.
Looking ahead to geopolitical conflicts, the UN Secretary-General said on Sunday that a full-scale war between Israel and Hezbollah would continue to be catastrophic.
Several Palestinian children and women were killed and injured over the weekend in Israeli airstrikes that targeted two houses in Gaza City.
