(Reuters) – Gold prices fell to their lowest level in nearly two weeks on Monday amid a stronger dollar as investors await comments from the US Federal Reserve this week.
The spot gold price dropped 0.96% to $ 1.931.06 per troy ounce by 13:32 Moscow time.
“The tug of war between the dollar and gold is expected to continue until there is a major shift in global risk sentiment or until investors can better understand the outlook for US monetary policy,” said Han Tan of FXTM.
Investors will be paying close attention to Fed officials' comments this week, hoping for more information on the new approach to inflation.
“They (central banks) are on hold and this has damped the hopes of the gold bulls,” said Michael Hewson of CMC Markets UK.
“It is unlikely that we will get any clarity on how the Fed is going to achieve its inflation targets, and on monetary policy, at least until after the US elections,” he added.
Palladium lost 1.29% to $ 2,326.61 an ounce, while silver slipped 1.6% to $ 26.34 an ounce. The platinum price dropped 0.85% to $ 919.93.
(Nakul Iyer in Bangalore. Translated by Olga Vishnevskaya. Editor Anna Kozlova)