As Treasury yields rose, gold slipped due to traders weighing mixed US economic data and the Federal Reserve’s aggressive strategy of raising interest rates.

While the latest data shows home construction dropping more than expected, US factory production increased for the first time in three months in July, leaving the economic picture muddled.

After rising for four weeks, bullion dipped as the US dollar began trending up again and bond yields remained elevated.

Nicky Shiels, head of metals strategy at MKS PAMP SA noted the drop in gold was “very contained” and bullion, “arguably held up relatively well above $1,770 given the earlier renewed strength in the dollar which has since reversed. Overall, persistent US dollar strength and the climb up in US yields ensures rallies are capped.” 

Bullion-backed exchange-traded funds, across the globe, have been contracting for nine weeks now, indicating investors are focusing their resources elsewhere.

Now gold’s next moves will be determined by the path of the Fed going forward. The Fed’s July meeting minutes will be released Wednesday, and may offer insights into the Fed’s thinking going forward and the path of future rate hikes.

Economist Nouriel Roubini warned ahead of their release, that economists saying the Fed may change course sound, “delusional.”

Spot gold was down 0.2%, to $1,775.74 an ounce as of 5 PM in New York, after falling 1.3% on Monday. December delivery of bullion fell 0.5%, resting at $1,789.70 on the Comex. The Bloomberg Dollar Spot Index held stable, after rising briefly as much as 0.3% . Spot silver was down, and Palladium was up.