Shafaq News / Gold prices held steady on Monday as investors awaited a U.S. Federal Reserve meeting this week where the central bank could signal a pause in interest rate hikes from July.
Spot gold was little changed at $1,960.01 per ounce by 0536 GMT, while U.S. gold futures fell 0.2% to $1,961.80.
With a Fed rate hike in the July meeting nearly certain, "a positive outlook for gold revolves around central bank buying to drive long-term gold prices," said Michael Langford, chief investment officer at Scorpion Minerals.
Data on Friday showed COMEX gold speculators raised their net long position by 35,288 contracts to 135,907 in the week ended July 18.
The dollar index inched lower, but held near its more than one-week peak hit on July 20, limiting gold's rise as a stronger dollar makes the metal more expensive for holders of other currencies.
Along with the Fed, the European Central Bank, or ECB, and the Bank of Japan are also meeting this week. Market focus will be on what Fed Chair Jerome Powell and ECB President Christine Lagarde say about the future.
Gold is highly sensitive to rising interest rates as they increase the opportunity cost of holding non-yielding bullion.
"The level of perceived dovishness or otherwise from the Fed likely to have a big say in whether the precious metal makes another run towards the $2000-level anytime soon," said Tim Waterer, chief market analyst at KCM Trade, in an note.
Traders are also awaiting second-quarter U.S. GDP data on Thursday, followed by personal consumption expenditures index figures for June on Friday.
Among other metals, spot silver rose 0.1% to $24.6 per ounce, platinum and palladium fell 0.1% to $960.78 and $1,289.51 respectively.
Platinum could be under-supplied for the rest of 2023 due to substitution in autocatalysts and lower South African mine production, UBS analysts highlighted in a note.
