As markets became cautious ahead of the anticipated consumer inflation data and Fed’s meeting, gold prices decreased marginally on Monday, remaining within a narrow trading range witnessed over the previous three weeks.

Spot gold slipped a bit to $1,958.94 per ounce, meanwhile gold futures dipped 0.2% to $1,973.30 per ounce.

The assumption that the Fed will forego raising interest rates at the conclusion of a two-day meeting on Wednesday helped the yellow metal find some support last week as a result of some weak job market statistics.

Given that the Fed's main objective in this cycle of rate hikes has been to bring down inflation, the release of inflation statistics on Tuesday is also anticipated to influence the Fed's decision. Although it will not reach the near 40-year highs anticipated through 2022, inflation will still be higher than the Fed's 2% annual target.