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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.