Gold dropped on Monday on rise in the dollar, amid predictions the Federal Reserve would hike interest rates at its policy meeting this week.
The precious metal hit a low of $1065.48 an ounce, while currently trading around 1060.03, compared to the session’s opening at $1073.16.
Some investors preferred to remain sidelined this week ahead of the Dec. 15-16 policy meeting that may witness the first interest rate hike in nearly 10 years.
A rise in the borrowing cost should reduce the allure of non-interest bullion and should boost demand on the dollar.
The U.S. dollar retreated against a basket of major currencies to 97.90, while hit a high of 97.98, according to the dollar index.
The yellow metal posted a weekly decline last week despite the drop in the U.S. dollar for a second straight week.
Upbeat data released from China over the weekend, showing a rise in industrial production to a five-month high, could not help either gold or oil.
Brent crude extended its losses for a seventh consecutive session to hover around $37.57 a barrel, amid persisting oversupply worries.
Some analysts believe that gold prices will tumble to $1000 an ounce, and then will start rebounding from this point.
