Gold prices slipped on Monday as a tentative deal sealed over the weekend to suspend the U.S. debt ceiling coupled with jitters around higher-for-longer interest rates weighed down on the non-yielding metal's appeal.

FUNDAMENTALS

* Spot gold was down 0.3% at $1,941.45 per ounce by 0059 GMT, hovering near two-month lows hit on Friday. U.S. gold futures fell 0.2% at $1,940.70.

* The dollar edged up 0.1%, making bullion more expensive for holders of other currencies.

* U.S. President Joe Biden said on Sunday he had finalized a budget agreement with House Speaker Kevin McCarthy to suspend the $31.4 trillion debt ceiling until Jan. 1, 2025 and that the deal was ready to move to Congress for a vote.

* Data on Friday showed U.S. consumer spending increased more than expected in April, boosting the economy's growth prospects for the second quarter, and inflation picked up.

* The report raised the chances of a 25-basis-point hike by the U.S. central bank in June to 64.2% and rates staying there for the rest of the year, according to the CME FedWatch tool.

* Gold, which offers no yield of its own, tends to fall out of favour among investors when interest rates rise.

* Asian shares and U.S. stock futures rose on Monday as the deal to suspend the U.S. government's debt ceiling ended a months-long stalemate and angst for investors.

* Spot silver fell 0.3% to $23.25 per ounce, platinum edged 0.2% lower to $1,020.11, while palladium rose 0.3% to $1,427.39.

* U.S. markets will be closed on Monday for the Memorial Day holiday.

DATA/EVENTS (GMT) No major data/events expected on Monday, May 29 (Reporting by Kavya Guduru in Bengaluru; Editing by Sherry Jacob-Phillips)