12.06.202318:15:00UTC+00Gold Futures Settle Lower As Dollar Climbs Up

Gold futures settled lower on Monday as the dollar climbed up after initial weakness with traders looking ahead to the Federal Reserve's monetary policy announcement, due later this week.

The dollar index, which dropped to 103.24 in the Asian session, climbed to 103.76 around noon, gaining nearly 0.2%.

Gold futures for August ended down $7.50 or about 0.4% at $1,969.70 an ounce.

Silver futures for July ended lower by $0.351 at $24.059 an ounce, while Copper futures for July settled at $3.7520 per pound, down $0.0370 from the previous close.

The Fed, scheduled to announce its monetary policy on Wednesday, is expected to pause its recent interest rate increases.

The central bank's accompanying statement as well as key U.S. consumer inflation data are eyed for clues about the outlook for interest rates.

CME Group's FedWatch Tool currently indicates a 71.2 percent chance the Fed will leave rates unchanged on Wednesday, but a 28.8 percent chance of another quarter point rate hike in July.

The European Central Bank is widely expected to hike rates by 25 basis points on Thursday. The Bank of Japan and the People's Bank of China are also scheduled to announce their monetary policies this week.