Gold Prices Fall Under Pressure from Rising Dollar

Gold prices fell on Monday to their lowest level in over a week under pressure from a rising dollar, as cautious investors await this week's Federal Reserve policy meeting, viewing recent increases in consumer prices as temporary. Spot gold dropped 0.6% to $1,864.61, the lowest since June 4. U.S. gold futures fell 0.7% to $1,866 per ounce. The dollar rose 0.1%, hovering near a week-long high against other major currencies, increasing the cost of gold for holders of other currencies. Last week, data showed a sharp rise in U.S. consumer prices, but Fed officials have repeatedly stated that inflation is temporary. Attention is now turning to the Federal Reserve meeting on June 15-16 for indications on policymakers' views regarding rising inflation and future monetary policy. Morgan Stanley noted in a research memo on Friday that the Fed may signal greater flexibility towards its quantitative easing program during the meeting. Silver steadied at $27.89 per ounce, while palladium fell 0.1% to $2,773.52, and platinum dropped 0.5% to $1,143.89.