Gold falls as the dollar rises ahead of the Fed meeting

Gold fell on Monday under the weight of the dollar’s rally as investors braced for a significant rate hike expected from the US Federal Reserve and other central banks this week to bring down inflation.

And gold fell in spot transactions 0.8 percent to $ 1661.65 an ounce at 0724 GMT.

US gold futures also fell 0.8 percent to $1,670.80.

The dollar index rose 0.3 percent, making gold more expensive for buyers of other currencies.

The Federal Reserve’s Federal Open Market Committee is expected to start its two-day meeting on interest rates on Sept. 20 and announce its decision the next day.

Markets expect the US Federal Reserve to raise interest rates by 75 basis points.

Most banks, from Switzerland to South Africa, are expected to raise rates in their meetings this week with markets divided over whether the BoE will raise rates by 50 or 75 basis points.

As for other metals, the price of silver in spot transactions fell 1.5 percent to $ 19.26 an ounce. Platinum fell one percent to $ 897.90 and the price of palladium fell 1.5 percent to $ 2103.25.