Technical factors not so positive for gold analyst
U.S. PCE data due on Friday

June 25 Reuters Gold prices eased on Tuesday, while investors looked toward key U.S. inflation data due later this week that could throw some light on the Federal Reserve39;s stance on interest rate cuts.

Spot gold was down 0.4 at 2,324.69 per ounce, as of 0632 GMT. U.S. gold futures fell 0.3 to 2,336.80.

Technical factors in the shortterm are not so positive for gold. After last Friday39;s selloff, shortterm traders view this as a bearish signal explaining the lackluster movement for gold holding on to these levels, said Kelvin Wong, a senior market analyst for Asia Pacific at OANDA.

Bullion dropped more than 1 on Friday as the dollar jumped after U.S. business activity crept up to a 26month high in June amid a rebound in employment.

Firstquarter U.S. gross domestic product GDP estimates are due on Thursday and the personal the consumption expenditures PCE price index report on Friday.

If the actual number for the core PCE comes in strong, it is potentially not a rosy news driver for gold and could actually see gold break below the 2,300 level, Wong added.

Lower rates reduce the opportunity cost of holding nonyielding bullion.

San Francisco Fed Bank President Mary Daly on Monday said she does not believe the U.S. central bank should cut rates before policymakers are confident that inflation is headed toward 2 but also noted that rising unemployment is increasingly a risk.

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