Dollar Strength Weighs on Gold Ahead of Fed Meeting

Gold prices dipped on July 28 as a stronger dollar weighed on markets. Spot gold fell by 0.6% to US$4,051.07 per ounce by 0726 GMT (3:26 pm Singapore time). The price had risen as much as 1% the previous day.

The dollar was near its one-month high, making greenback-priced bullion more expensive for holders of other currencies. According to Ilya Spivak, head of global macro at Tastylive, 'We're oscillating in this narrow range between US$3,950 and US$4,200, and I think the market is just waiting for Fed signals.'

The Federal Reserve's two-day policy meeting concluded on July 29. Market participants expect a 62% chance that interest rates will be held steady, while 38% anticipate at least a 25-basis-point rate hike.