Gold prices ease, surrender gains on dollar strength

Gold prices dipped on Monday, giving up early gains as the U.S. dollar rose on expectations that the U.S. Federal Reserve will raise interest rates at its policymaking meeting next week. 

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The losses, however, remained modest amid jitters over the resignation of Italian Prime Minister Matteo Renzi after he lost a referendum on constitutional reform.

                                                          Spot gold slipped 0.1 % to $1,175.81 an ounce by 0458 GMT. U.S. gold futures were steady at $1,177.80 per ounce. 


"Looks like people are buying the U.S. dollar and that is in turn prompting selling in gold," said Yuichi Ikemizu, head of commodity trading at Standard Bank in Tokyo.

"People bought gold after the Italian referendum and it looks like they are selling back."

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