<p>Gold prices edged lower on Tuesday to hover near a one-week low hit in the previous session, weighed down by a firm dollar and concerns that the US Federal Reserve will tighten its monetary policy sooner than expected.</p>.<p>Spot gold was down 0.2 per cent to $1,775.49 per ounce by 0255 GMT, after marking its lowest since June 21 at $1,770.36 on Monday. US gold futures fell 0.3% to $1,775.70.</p>.<p>ED&F Man Capital Markets analyst Edward Meir said listless trading was seen in the gold market as some market participants were still confused over the Fed's policy outlook.</p>.<p>Several Fed policy makers have turned hawkish despite a weaker-than-expected US inflation reading last week.</p>.<p>The Fed has made "substantial further progress" towards its inflation goal in order to begin tapering asset purchases, Fed Bank of Richmond President Thomas Barkin said.</p>.<p>The dollar hovered below a two-month high against its rivals, making gold more expensive for holders of other currencies.</p>.<p>However, Meir said, "the dollar will start to weaken again, because the landscape is clear on the rate (hike) front for at least another 18 months to two years."</p>.<p>Gold is seen as a hedge against inflation, though a Fed rate hike will increase the opportunity cost of holding bullion and dull its appeal.</p>.<p>"Although having rebounded (from a selloff two weeks ago), gold has continued to trade below its 100-day moving average level," OCBC said in a note.</p>.<p>"We expect gold to resume its downward trend this week as risk sentiment firms and markets continue to look towards the prospects of tightening monetary conditions from the Fed."</p>.<p>Silver eased 0.4 per cent to $25.99 per ounce, palladium slipped 0.2 per cent to $2,680.62, and platinum shed 0.1 per cent to $1,088.93.</p>
<p>Gold prices edged lower on Tuesday to hover near a one-week low hit in the previous session, weighed down by a firm dollar and concerns that the US Federal Reserve will tighten its monetary policy sooner than expected.</p>.<p>Spot gold was down 0.2 per cent to $1,775.49 per ounce by 0255 GMT, after marking its lowest since June 21 at $1,770.36 on Monday. US gold futures fell 0.3% to $1,775.70.</p>.<p>ED&F Man Capital Markets analyst Edward Meir said listless trading was seen in the gold market as some market participants were still confused over the Fed's policy outlook.</p>.<p>Several Fed policy makers have turned hawkish despite a weaker-than-expected US inflation reading last week.</p>.<p>The Fed has made "substantial further progress" towards its inflation goal in order to begin tapering asset purchases, Fed Bank of Richmond President Thomas Barkin said.</p>.<p>The dollar hovered below a two-month high against its rivals, making gold more expensive for holders of other currencies.</p>.<p>However, Meir said, "the dollar will start to weaken again, because the landscape is clear on the rate (hike) front for at least another 18 months to two years."</p>.<p>Gold is seen as a hedge against inflation, though a Fed rate hike will increase the opportunity cost of holding bullion and dull its appeal.</p>.<p>"Although having rebounded (from a selloff two weeks ago), gold has continued to trade below its 100-day moving average level," OCBC said in a note.</p>.<p>"We expect gold to resume its downward trend this week as risk sentiment firms and markets continue to look towards the prospects of tightening monetary conditions from the Fed."</p>.<p>Silver eased 0.4 per cent to $25.99 per ounce, palladium slipped 0.2 per cent to $2,680.62, and platinum shed 0.1 per cent to $1,088.93.</p>