Gold slips on firmer dollar, spotlight on Fed meeting

Gold prices dipped on Monday as the U.S. dollar held firm, with traders positioning themselves ahead of a much awaited Federal Reserve rate-hike decision due this week.

Spot gold was down 0.4% at $1,981.96 per ounce by 0254 GMT. U.S. gold futures fell 0.4% to $1,991.70.

The dollar index rose 0.1%, making greenback-priced bullion more expensive for overseas buyers.

The Federal Open Market Committee (FOMC) will meet on May 2-3, and investors are largely expecting a 25 basis-point interest rate hike.

“If the Fed comes out unexpectedly hawkish, then it won’t bode well for gold. However, I don’t think prices will fall below the $1,930 level,” said Ilya Spivak, head of global macro at Tastylive.

Data on Friday highlighted that U.S. consumer spending was unchanged in March, while underlying inflation pressures remained strong, which could see the U.S. central bank raising interest rates again next month.

This report’s information was first seen on ZAWYA; to read more, click this link.