Gold retreated amid solid greenback, attention is now on Fed's meeting
Gold slid on Monday amid solid greenback, where traders are anxiously focusing on Fed’s stance regarding the upcoming interest rate hike that shall be revealed this week.
Spot gold slumped by 0.5% to $1,980.78 per ounce meanwhile US gold futures dropped 0.5% to $1,989.20.
The dollar index edged up by 0.2%, making bullion purchased in US dollars more expensive for foreign customers.
Investor are currently projecting that Fed will hike rate by 25 bps at the FOMC meeting scheduled on the 2nd and the 3rd of May.
Data released on Friday showed that consumer spending in the United States stayed constant in March, although underlying inflation pressures remained high, suggesting that the Federal Reserve may raise interest rates.
Gold prices surged more than 1% in April, as continued concerns about turbulence in the US banking sector boosted the metal's allure as a safe haven for investors.
