(Reuters) – Gold edged lower on Monday as the dollar held firm on news that China has cancelled trade talks with the United States, with the market also eyeing this week’s U.S. Federal Reserve meeting for guidance on future rate hikes.
Investors are awaiting this week’s Federal Reserve meeting, where the U.S. central bank is widely expected to raise benchmark interest rates and shed light on the path for future rate hikes.
“Gold traditionally trades poorly ahead of anticipated Fed hike and the dollar will have up ground,” said Stephen Innes, APAC trading head at OANDA.
Meanwhile, speculators increased their net short position in COMEX gold contracts in the week to Sept. 18, U.S. data showed on Friday.
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