Gold falls against strengthening dollar

The price of gold fell on Monday morning to below $1,680 a troy ounce, holding back the value of the stronger dollar. At the same time, the markets continue to wait for a decision on the rate from the US Federal Reserve System (Fed), Report informs.

The price of December futures for gold on the New York Comex fell by $6.65, or 0.4%, to $1,676.85 per troy ounce. December futures for silver rose 0.24% to $19.462 an ounce.

The dollar index (the exchange rate against a basket of currencies of six countries - US trading partners) grew by 0.06%, to 109.83 points. The dollar's appreciation makes gold less affordable when bought in another currency.

On Wednesday, the Fed will announce its decision on the key rate, as well as update macroeconomic forecasts, and later at a press conference, the chairman of the regulator, Jerome Powell, will speak. Markets will be waiting for signals on further monetary policy measures.

Gold is sensitive to signals from the Fed on the rate and to US macro statistics, as this is reflected in the dollar, to which the quotes of the precious metal are sensitive.