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Gold edges lower amid American rate lift talk

On Monday, gold prices edged lower, following remarks from a Fed official indicating the probability for a near term American rate lift.

In New York, December delivery gold futures slumped 0.12%, hitting $1,332.90 per troy ounce. Futures were likely to gain support at $1,323.20, which is the minimum from September 6 as well as resistance at $1,345.40, the peak from September 8.

Gold prices were under pressure after on Friday, Boston Fed President Eric Rosengren informed that the American economy has proven to be more resilient to external risks and that gradual tightening seems to be appropriate.

The comments spurred fresh speculation regarding a potential rate lift in the near future.

Gold happens to be sensitive to moves in American rates. Additionally, a gradual path to higher rates is considered to be a less threat to gold prices than a swift series of surges.

Traders were looking ahead to a speech from FOMC voting member Lael Brainard due later on Monday for further clues on a potential rate lift. 

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