Gold settled marginally lower on Monday to halt its streak of six sessions of gains amid a modest strengthening in the US dollar. The greenback was supported by stronger-than-expected readings on the US economy. However, the broader economic outlook remains clouded as political uncertainty creates obstacles for President Donald Trump to implement his fiscal stimulus and tax reforms agenda, which could boost safe-haven demand for gold further.
Investors are bracing for possible hints on the timing of the next interest rate hike, ahead of a meeting of Fed's rate-setting committee that begins later today. While no imminent action on rates is expected, the bullion market should remain subdued ahead of the meeting. Gold was last trading around $1257 per troy ounce, leaving the short-term uptrend intact. On the upside, a breakout above $1260 could see bullion rally to $1275.