Gold was little changed on Monday, as the impact of a stronger dollar ahead of a Federal Reserve policy meeting was offset by persistent uncertainty around Greece after debt talks with its creditors stalled.
Spot gold was unchanged at $1,180.90 an ounce by 1143 GMT, while U.S. gold futures for August delivery were up $1.40 an ounce at $1,180.40.
The dollar rose 0.3 percent against a basket of major currencies, making dollar-denominated gold more expensive for holders of other currencies.
Investors hoped the Federal Reserve could offer a clear signal on the timing of its first interest rate hike in nearly a decade during its June 16-17 policy meeting.
“Yellen can now be a bit more optimistic about growth, maybe she will intimate that the path is being prepared for a rate rise (by year-end),” Societe Generale analyst Robin Bhar said.
A rate hike could boost the dollar further, in turn diminishing demand for non-interest-paying gold.
via Reuters
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Alfonso Esparza
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