Gold edged lower after Friday's decline as the US resolved its debt-default saga, quelling demand for the haven metal.

After hailing the budget agreement that averted a first-ever US debt default, President Joe Biden said the world wouldn't be shaken by doubts about the creditworthiness of the top economy. The dollar and Treasury yields ticked higher on Monday, putting pressure on gold.

The metal has slid almost 6% from a peak in early May as US data indicated the economy is holding up well, giving the Federal Reserve room to tighten monetary policy further. Few traders see a hike at its meeting this month, though several officials have said their could be more tightening later this year.

Higher interest rates tend to hurt non-yielding gold. Later Monday investors will eye a slew of US data, including a services gauge from the Institute for Supply Management, for signals of the health of the economy.

Spot gold declined 0.3% to $1,942.20 an ounce as of 9:28 a.m. in London, after closing Friday down 1.5%. The Bloomberg Dollar Spot Index edged up 0.2%. Silver fell, platinum steadied and palladium rose.

Source : Bloomberg