Gold prices eased on Monday as the U.S. dollar held firm, with cautious traders awaiting the Federal Reserve's interest rate hike decision later this week.
The dollar index rose 0.2%, making greenback-priced bullion more expensive for overseas buyers.
"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. Bullion is known as an inflation hedge, but rising rates tend to dull the zero-yielding asset's appeal. "If we see a meaningful downturn in U.S. economic data that expanded rate cut expectations for the back half of this year, then gold prices could climb above the $2,000 mark," Spivak added.
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