Investing.com - Gold prices rebounded in Asia on Monday with statements from the weekend G7 meeting of finance policymakers setting a mixed tone on global growth policies and investors more focused on the Federal Reserve.
Gold for June delivery on the Comex division of the New York Mercantile Exchange rose 0.19% to $1,255.25 a troy ounce.
Silver futures for July delivery was nearly flat at $16.530 a troy ounce. Copper futures for July delivery rose 0.24% to $2.060 a pound.
Last week, gold prices edged lower on Friday to end near a three-week low as markets factored in the possibility of another interest rate hike by the Federal Reserve as early as June.
On Thursday, gold tumbled to $1,244.60, a level not seen since April 28, after New York Federal Reserve President William Dudley said the U.S. economy could be strong enough to warrant a rate increase in June or July.
The hawkish comments came after the minutes of the Federal Reserve's latest policy meeting suggested a rate hike could come as early as June.
Minutes of the Fed's April 26-27 policy meeting published Wednesday revealed that the central bank was likely to raise rates next month if economic data points to stronger second-quarter growth as well as firming inflation and employment.
Odds of a Fed rate hike for June stood at about 30% on Friday, up from just 4% a week earlier, according to futures markets. July odds were at about 50%.
Gold is sensitive to moves in U.S. rates, as a rise would lift the opportunity cost of holding non-yielding assets such as bullion.
A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
In the week ahead, investors will continue to focus on U.S. economic reports to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016, with Friday’s revised first quarter growth data in the spotlight.
In addition, there are a handful of Fed speakers on tap, including comments by Fed Chair Yellen on Friday, as traders search for more clues on the timing of the next U.S. rate hike.
On Monday, the euro zone is to release survey data on manufacturing and service sector activity. Germany and France are also to release individual reports.
Later in the day, the U.S. is to release flash data on manufacturing activity. Meanwhile, St. Louis Fed President James Bullard, San Francisco Fed President John Williams and Philadelphia Fed President Patrick Harker are scheduled to speak throughout the day.