Bullion prices still hover close to threemonth lows
Dollar sluggish as investors ponder over rates, economic outlook
Specs raise net long position in COMEX gold

June 26 Reuters Gold climbed on Monday after a weaker dollar made bullion more attractive for overseas investors, although prices hovered close to threemonth lows as traders assessed prospects of more interest rate hikes by the U.S. Federal Reserve.

Spot gold rose 0.3 to 1,926.19 per ounce by 0538 GMT. U.S. gold futures also gained 0.3 to 1,936.00.

Bullion slumped nearly 2 in the previous week as hawkish comments from Fed officials signalled more rate hikes to tame sticky inflation.

Higher interest rates make nonyielding gold less appealing.

We are near the end of tightening cycle, but still not quite at the end as there is still the risk of it being extended, hence the depressed price action, said OCBC FX strategist Christopher Wong.

Investors now expect a 72 chance of a rate hike in July, with rate cuts seen from 2024 onwards, per CME39;s Fedwatch tool.

The dollar index edged 0.2 lower.

Yet the lower trend in gold was in part offset by strong physical consumption from central banks and China and some recession tail hedging, Citi analysts said in a note.

Speculators raised their net log position in COMEX gold by 1,322 to 94,626 in the week ended June 20, CFTC data showed on Friday.

Oil prices were slightly higher as weekend troubles in Russia raised questions about crude supply, but left investors…