WASHINGTON (dpa-AFX) - Gold prices dropped on Monday as the dollar firmed and bond yields rose amid bets U.S. inflation will likely rise and push up interest rates if former President Donald Trump manages to win the presidential election in November.
The greenback gained after a left-wing alliance won the most seats in the French parliament, thwarting the far right in a stunning result to Sunday's second-round vote.
The bullion was also weighed down by profit taking after recent gains.
The dollar index, which dropped to 104.80, recovered to 104.95, recording a small gain.
Gold futures for July ended down $33.30 or about 1.4% at $2,355.20 an ounce.
Silver futures for July settled lower by $0.770 or nearly 2.5% at $30.618 an ounce, while Copper futures for July dropped to $4.6080 per pound, down $0.0505 or about 1.1% from the previous close.
The U.S. Labor Department is due to release its reports on consumer and producer prices for June this week. The U.S. CPI is expected to slow to 3.1% from 3.3%.
Upcoming Congressional testimony by Fed Chair Jerome Powell on Tuesday and Wednesday may also provide greater clarity on Fed's monetary policy path.
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