Gold falls as dollar hovers near one-month peak; Fed meet in focus
GLD•Other precious metals also decline
Among other metals, spot silver XAG= dropped 1.8% to 57.36 per ounce, platinum XPT= eased 0.1% to $1,619.25, and palladium XPD= fell 1.6% to $1,271.05.
Commerzbank cuts gold price forecast
Commerzbank lowered its year-end gold price forecast by $300 to $4,500 per ounce, adding that without a reversal in interest rate expectations, a lasting return of gold ETF investors and a recovery in gold price are unlikely.
Markets await Fed, PCE data and rate outlook cues
Investors now await the Fed's rate decision and Chair Warsh's comments on Wednesday. Traders see a 71% chance of policymakers holding interest rates steady on Wednesday, while expecting a 74% chance of a rate hike at the central bank's September meeting. FEDWATCH
The U.S. Personal Consumption Expenditures data for June, due on Thursday, is also on the agenda this week, with investors expected to seek further cues on monetary policy.
Gold slips as dollar stays firm ahead of Fed decision
July 28 (Reuters) - Gold fell on Tuesday, weighed down by a firm dollar that hovered near a one-month high, while investors awaited this week's U.S. Federal Reserve interest rate decision and comments from Chair Kevin Warsh for signals on the policy outlook.
Spot gold XAU= fell 0.7% to $4,045.29 per ounce by 11:55 a.m. EDT (1555 GMT), while U.S. gold futures for August delivery GCcv1 slid 0.8% to $4,045.20.
The U.S. dollar steadied near a one-month high on Tuesday, making greenback-priced bullion expensive for buyers overseas. USD/
"Elevated energy prices remain an inflationary concern for Fed members, and the expected hawkish tilt by the Fed has forced interest rate hike expectations and the U.S. dollar higher, applying pressure on the gold market," said David Meger, director of metals trading at High Ridge Futures.
