Investing.com - Gold prices were flat on Monday as investors wait for a flurry of central bank policy decisions this week.
Comex gold futures for August delivery rose 0.02% to $1,223.20 a troy ounce as of 11:07 AM ET (15:07 GMT).
The Federal Open Market Committee (FOMC) meets on Tuesday and Wednesday, with a policy decision scheduled for Wednesday afternoon. Investors do not expect the Fed to increase interest rates this week, but there is an 87.8% chance the central bank will hike rates in September.
Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.
Other central banks are also expected to meet this week with the Bank of Japan ending its two-day meeting on Tuesday. The Bank of England is expected to raise interest rates on Thursday, despite Brexit uncertainty.
The precious metal was also boosted by a fall in the U.S. dollar after U.S. President Donald Trump threatened to shut down the government if he does not get funding for a border wall.
Gold falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.42% to 94.07.
Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.
Other metals were higher on the Comex, with silver futures rising 0.24% to $15.530 a troy ounce. Among other precious metals, Platinum Futures increased 0.24% to $833.70, while Palladium Futures jumped 0.58% to $923.80 an ounce. Copper futures fell 0.11% to $2.799 a pound.