Gold subdued as dollar holds firm; Fed meeting in focus

Gold subdued as dollar holds firm; Fed meeting in focus

Gold prices inched lower on Monday, hovering around the $1,800 per-ounce psychological level, as the U.S. held firm, with investors turning their attention to the Federal Open Market Committee’s meeting this week.

Spot gold fell 0.1% to $1,799.89 per ounce by 0110 GMT. US gold futures fell 0.2% to $1,798.90 per ounce.

The dollar index held close to a 3-1/2-month peak hit last week, making gold more expensive for holders of other currencies.

While no policy change is expected from the committee’s meeting on Tuesday and Wednesday, investors will look out for clues on when the U.S. central bank might rein in its easy monetary policies.

U.S. business activity grew at a moderate pace for a second straight month in July amid supply constraints, suggesting a cooling in economic activity.

A growing number of European countries are raising their defences to counter the increase in the Delta variant of coronavirus, trying to pressure more people to get vaccinated.

Physical gold demand in India was lacklustre last week with buyers put off by price volatility, forcing dealers to raise discounts to their highest in nearly a month to encourage purchases.

Speculators raised their net long positions in COMEX gold in the week ended July 20, data from the U.S. Commodity Futures Trading Commission showed.

Silver rose 0.1% to $25.18 per ounce, while palladium and platinum were flat at $2,671.77 and $1,061.55, respectively.

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