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Gold prices rose in European trade on Monday, extending losses for the second straight session and recovering from a two-week trough, as the dollar lost ground.

Eyes are focused on the Federal Reserve’s policy meeting this week, expected to hold interest rates unchanged for the third meeting in a row while providing clues on the future of interest rates this year.

The Price

Gold prices rose 1% today to $3272 an ounce, with a session-low at $3237.

On Friday, gold rose 0.1%, the first profit in four days away from a two-week trough at $3202.

The precious metal slid 2.4% last week, the second weekly loss in a row on profit-taking away from a record high.

The Dollar

The dollar index fell 0.4% on Monday against a basket of major rivals today.

It comes on profit-taking away from three-week highs, while investors shun new positions before new developments in the US-China trade talks.

The Fed

Tomorrow, the Federal Reserve will convene and discuss monetary policies, expected to hold interest rates unchanged.

The Fed’s monetary statement and Chair Powell’s subsequent press conference will likely provide clues on the path ahead for policies.

US President Donald Trump continued to pressure Powell to cut interest rates, however he said won’t fire him before the end of term in May 2026.

US Rates

Several Fed officials don’t believe there’s an urgent need to review monetary policies soon.

According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in May stood at just 8%.

The odds of such a cut in June stood at a healthier 65%.

SPDR

Gold holdings at the SPDR Gold Trust fell 1.15 tons on Friday to a total of 944.26 tons.