Gold prices fall on firmer dollar; Spot gold reaches $1.722.84 per ounce

Gold prices slipped on Monday, as an elevated dollar and prospects of an aggressive interest rate hike by the US Federal Reserve this week dented demand for non-yielding bullion.

FUNDAMENTALS

* Spot gold was down 0.2% at $1,722.84 per ounce, as of 0110 GMT, after rising to a more than one-week high on Friday.

* US gold futures fell 0.5% to $1,718.70 per ounce. 

* The dollar rose 0.1% against its rivals, making greenback-priced bullion more expensive for buyers holding other currencies. 

* The US central bank will conclude a two-day meeting on Wednesday, and markets are pricing in a 75-basis-point rate hike to combat soaring inflation. 

* Although gold is seen as a hedge against inflation, rising interest rates increase the opportunity cost of holding bullion.

* US Treasury Secretary Janet Yellen said on Sunday that the US economic growth was slowing and she acknowledged the risk of a recession, but she said a downturn was not inevitable. 

* Last week, the European Central Bank joined its global peers in the fight against soaring inflation as it raised interest rates by 50 bps. 

* The European Central bank will raise its interest rates until inflation falls back to its 2% target, President Christine Lagarde said in an interview with Germany's Funke Mediengruppe published on Friday.

* Spot silver was down 0.6% at $18.48 per ounce, platinum dipped 0.6% to $868.62, and palladium slipped 1.5% to $1,999.94.