Gold Slips

Gold dipped on Monday, in a signal of tighter future monetary policy at a meeting this week that is expected to boost rates. Spot gold was down 0.02% at $1,297.69 per ounce, while US gold futures for August delivery were 0.04% lower at $1,302.20 per ounce, Reuters reported. The US Federal Reserve will likely raise its target interest rate to above the rate of inflation for the first time in a decade this week, seeking to sustain the second-longest US expansion on record while continuing to edge rates higher. “Everybody’s on the sidelines, waiting for the outcome of the Fed meeting. There’s a tug of war on views on what kind of message the fed will put out,” said Gianclaudio Torlizzi, partner at consultancy T-Commodity in Milan. “My personal view is that the fed will surprise with a hawkish mode, which will see a spike in the dollar and produce a brief but deep sell-off of precious metals.” That would open up an opportunity for investors to go long in gold since a seasonal rally is expected over the summer, Torlizzi added.