Gold fell amid the rise of the dollar and anticipation of the US Central Bank meeting

Gold prices fell on Monday, weighed down by a stronger dollar, as investors cautiously await the Federal Reserve’s decision to raise interest rates later this week.

By 0531 GMT, spot gold fell 0.5 percent to $1980.42 an ounce, and US gold futures fell 0.5 percent to $1989.10.

The dollar index rose 0.2 percent, making the dollar-denominated metal too expensive for buyers abroad.

The Federal Open Market Committee will meet on Tuesday and Wednesday and investors expect a rate hike of 25 basis points.

Data published on Friday showed that US consumer spending was unchanged in March while underlying inflation pressures remained strong, which could lead the US central bank to raise interest rates again.

Gold prices rose more than 1 percent in April as renewed concerns about US banking turmoil prompted investors to flock to safe-haven assets.

Expectations are rising that the European Central Bank will raise interest rates at its meeting next Thursday for the seventh time in a row.

As for other precious metals, silver rose 0.1 percent, recording $ 25.06 an ounce, while platinum fell 0.7 percent to $ 1066.56, and palladium fell 0.4 percent to $ 1495.06.