Gold slips, market cautious ahead of U.S. data this week

Gold prices edged lower on Monday as investors remained cautious ahead of a flurry of U.S. data due this week, with firmer Asian stocks also weighing on the market.

"The market is looking at this week with caution.There's certainly some expectations of disappointing data and also a more dovish Fed, that could keep gold prices elevated," ANZ analyst Daniel Hynes said. "Anything on the inflation front will be constantly watched."

Spot Gold fell 0.2 percent to $1,254.00 per ounce at 0515 GMT, staying not far off a one-week high hit on Friday.

U.S. gold futures for August delivery fell 0.1 percent to $1,255.2 per ounce.

Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.35 percent to 851.02 tonnes on Friday.

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