 "Gold prices at 1-1/2-week low on dollar strength as Fed meeting looms")
By Brijesh Patel
(Reuters) - Gold prices slipped on Monday to their lowest in more than a week, weighed down by a stronger dollar, while investors awaited cues from the Federal Reserve policy meeting this week with recent spikes in U.S. consumer prices seen as a temporary blip.
Spot gold was down 0.6% at $1,864.58 per ounce, as of 0311 GMT, its lowest since June 4.
U.S. gold futures fell 0.6% to $1,867.60 per ounce.
"The market is starting to anticipate maybe a modest pivot towards discussing taper and it's sending investors into more of a either profit-taking or reducing gold and also currency positions," said Stephen Innes, managing partner at SPI Asset Management.
"Because of this the dollar has also gotten a little bit stronger. I think primarily, the inflation pressures are at a state that they may not last, so there's a little bit of uncertainty how CPI is going to continue playing out."
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The dollar strengthened 0.1% to hover near a one-week high against its rivals, making gold more expensive for holders of other currencies.
Last week, data showed U.S. consumer prices rose solidly in May. However, Fed officials have repeatedly said that inflation would be transitory and expect monetary stimulus would stay in place for some time.
Focus now shifts to the Fed's June 15-16 meeting for further clarity on the policymakers' view on rising inflation and monetary policy going forward.
Morgan Stanley in its research note on Friday said it expects the Fed at its upcoming policy meeting to lay the groundwork for increased flexibility on its quantitative easing program by "talking about talking about tapering".
Meanwhile, speculators reduced their net long positions in COMEX gold in the week ended June 8 and raised their net long positions in silver.
Elsewhere, silver slipped 0.3% to $27.80 per ounce, palladium eased 0.2% to $2,771.31, while platinum dipped 0.6% to $1,143.71.
(Reporting by Brijesh Patel in Bengaluru, Editing by Sherry Jacob-Phillips)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)