Gold Steadies Below $1,250

Gold steadied below $1,250 an ounce on Monday after its biggest weekly drop in more than six months, with moves muted ahead of an expected interest rate hike from the US Federal Reserve this week, Reuters reported. Spot gold was at $1,247.48 an ounce, little changed from late on Friday, while US gold futures for February delivery were up $1.30 an ounce at $1,249.70. Spot prices fell 2.5% last week, their biggest weekly drop since May. The Fed is widely tipped to lift rates at its two-day policy meeting ending Wednesday, but its accompanying statement will be closely watched for any surprises. The bank is expected to increase rates another two or three times in 2018, but still-sluggish inflation and wage growth has raised question marks over that view. Silver was down 0.4% at $15.77 an ounce. Platinum was down 0.1% at $886.40 an ounce, after touching its lowest since February 2016 last week. Palladium was 0.2% lower at $1,004.10 an ounce.