Dollar slips to three-week low
US factory activity slips for a second month in May, ISM says
Benchmark U.S. Treasury yields drop to 2-week low
Palladium up more than 1%
(Recasts after U.S. economic data, adds graphic and updates prices)
June 3 (Reuters) – Gold prices rose on Monday as weaker-than-expected U.S. economic data cemented expectations that the Federal Reserve would cut interest rates later this year, sending the dollar and bond yields lower.
Spot gold was up 0.9% at $2,348.06 per ounce as of 12:42 p.m. ET (1642 GMT), after posting a 2% gain last month. Prices hit an all-time high of $2,449.89 on May 20.
U.S. gold futures rose about 1% to $2,368.60 per ounce.
“We’ve had a bit of a pullback, we’d prefer to call it a consolidation. But again, the underpinning positive bias really comes from strong expectation that we are moving towards a interest rate cuts at some…
