Gold prices were little changed on Monday as investors awaited a US Federal Reserve meeting this week where the central bank could signal a pause in interest rate hikes from July.
Spot gold was little changed at $1,960.30 per ounce. Bullion gained nearly 0.3 percent last week.
US gold futures fell 0.2 percent to $1,962.00.
With a Fed rate hike in the July meeting nearly certain, “a positive outlook for gold revolves around central bank buying to drive long-term gold prices,” said Michael Langford, chief investment officer at Scorpion Minerals.
Data on Friday showed COMEX gold speculators raised net long position by 35,288 contracts to 135,907 in the week ended July 18.
Additionally, the risk of a US recession, evident in the inverted yield curve, could lift gold investment, ANZ analysts highlighted in a note.
Gold is considered as a safe store of value during economic and geopolitical uncertainties and typically does well when interest rates are low or near zero.
The dollar index inched lower, but held near its more than one-week peak hit on July 20, limiting gold’s rise as a stronger dollar makes the metal more expensive for holders of other currencies.
