Gold futures dropped to one-week lows on Monday, erasing the previous week’s gains, as investors looked ahead to the outcome of the upcoming Federal Open Market Committee meeting later in the week.
Investors remained cautious ahead of Wednesday’s Fed meeting, with the ongoing speculations over the prospects for a U.S. rate hike next year.
Concerns continue to dominate the market over the economic impact of the continuing unrest in Crude Oil prices and its effect on energy companies, in addition to data showing further signs of a slowdown in China added to fears over the global economic outlook.
Politically, eyes this week are on Greece after a surprise decision by the government to bring forward a parliamentary vote for president to this week.
Gold prices were down 0.81% to $1212 an ounce at 09:57 GMT, compared to the entry levels at $1222 an ounce.