Gold dips on concern about upcoming Fed meeting
Metal slips amid pressure from a firmer dollar and worry that the Federal Reserve will signal a tighter future monetary policy
London — Gold dipped on Monday, pressured by a firmer dollar and the concern that the US central bank will signal a tighter future monetary policy at a meeting this week that is expected to boost rates. Spot gold was down 0.2% at $1,295.35/oz at 9.55am GMT, while US gold futures for August delivery were 0.3% lower at $1,299.20/oz. The US Federal Reserve is likely to raise its target interest rate to above the rate of inflation for the first time in a decade this week, seeking to sustain the second-longest US expansion on record while continuing to edge rates higher. "Everybody’s on the sidelines, waiting for the outcome of the Fed meeting. There’s a tug of war on views on what kind of message the Fed will put out," said Gianclaudio Torlizzi, partner at consultancy T-Commodity in Milan. "My personal view is that the Fed will surprise with a hawkish mode, which will see a spike in the dollar and produce a brief but deep sell-off of precious metals." That would open up an opportunity f...
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