Gold futures fell to $15.20 as the dollar strengthened and bond yields pressured the market.

COMEX (Commodity Exchange) gold contracts will be offered in August. Minus $15.20, $2,364.10/oz.

A strong dollar reduces the attractiveness of gold. Meanwhile, a rebound in U.S. government bonds will increase the opportunity cost of holding gold by making gold contracts more expensive for holders of other currencies. This is because gold is an asset with no income in the form of interest.

Gold prices were also weighed down by investor concerns that the Federal Reserve will keep interest rates higher for longer than expected.

CME Group's latest FedWatch tool indicates investors expect the Fed to cut interest rates only once this year. That will happen in November. Since first expected in September.

Meanwhile, European Central Bank (ECB) officials are united in signaling an interest rate cut at their June 6 monetary policy meeting.

If the ECB cuts interest rates by 0.25% at its June 6 meeting, it will cut rates faster than the ECB Fed.

The market is keeping an eye on the Personal Consumption Expenditure (PCE) price index due out on May 31 for signals indicating the timing of a rate cut by the central bank.

The PCE index is considered a measure of inflation that the central bank emphasizes. It can detect changes in consumer behavior. and covers the prices of goods and services more broadly than the Consumer Price Index (CPI).