Quotes of gold increased significantly at the beginning of the session, but then fell back to the opening level, which was caused by the strengthening of the dollar in response to the strong US data.

The US Commerce Department reported that orders for long-term industrial goods increased in April against the background of the high demand for transport equipment and a number of other products, but the continuing weakness of the planned business spending suggests that the decline in production is far from complete. According to the data, orders for durable goods jumped 3.4 percent last month after a revised upward growth of 1.9 percent in March. Earlier it was reported that orders for durable goods rose 1.3 percent in March. Non-defense capital goods orders excluding aircraft, which are closely monitored by the sensor of the planned business spending, fell 0.8 percent after an upwardly revised decline of 0.1 percent in the previous month. Earlier it was reported that they fell by 0.8 percent in March. Economists forecast that orders for durable goods rise by 0.5 percent last month and core capital goods orders to rise by 0.4 per cent.

The growth of long-term orders was another signal that the economy is gaining momentum after the growth slowed down to 0.5 per cent per annum in the 1st quarter. So far, reports on retail sales, industrial production and housing have offered a favorable opinion on the economy at the beginning of the second quarter.

In anticipation of its meeting the Fed is looking for signs that economic growth is accelerating, and the economic situation abroad has stabilized. More positive data may give some confidence the leadership of the Central Bank. Now investors are waiting for Fed Chairman Yellen speech, scheduled for Friday, which may to some extent make it clear whether the Central Bank will raise rates soon. Futures on interest rates Fed indicate that the probability of increase is 30% rate in June, and is estimated at 60% in July. Recall, higher interest rates have a downward pressure on the price of gold, which brings its holders to interest income and that is difficult to compete with the assets, bringing that income against the background of increasing interest rates.

"Gold has entered a phase of consolidation due to expectations that the Fed will raise rates this summer - said Carlo Alberto de Casa, chief analyst at ActivTrades -. Today, we have seen only a technical rebound after yesterday precious metal touched a high of $ 1217."

Gold rose more than 15 percent since the beginning of the year, as investors bought the metal amid concerns over global economic growth and stock market volatility. But physical demand from China and India, the major markets, which accounted for more than half of world consumption, was weak.

The cost of the June gold futures on the COMEX fell to $ 1222.4 per ounce.