Gold futures scaled back gains on Monday as the dollar edged higher, but expectations of new fiscal stimulus in the US supported gold prices ahead of this week's Fed meeting.
Monthly gold futures in COMEX2, the most actively traded, fell 0.1 per cent, or $1, to settle at $1855.20 an ounce at 13:30 in New York.
March silver futures, the most actively traded, closed down 7. 2 cents at $25.484 an ounce.
April platinum futures closed down $6.90 to settle at $1104.7 an ounce.
March palladium futures fell $18.30 to settle at $2346.90 an ounce.
Among other COMEX metals, copper for March delivery, the most actively traded, rose 35 cents to settle at $3.6295 a pound.
The dollar rose 0.2%, making gold more expensive for holders of other currencies.
"We are starting to see some early signs that the dollar index has hit a short-term bottom, and if that is the case, the rise in the dollar is bad for the bull market in gold," said Jim Wyckoff, a senior analyst at Kitco Metals.
"given that all the stimulus measures and central bank easing have flooded the global financial system with cash, the future inflation outlook will support gold prices in the long run." Wyckoff added.
The Fed, which begins its two-day policy meeting on Tuesday, is expected to maintain its bailout model and keep interest rates near zero.
Lower interest rates reduce the opportunity cost of holding unyielding gold and depress the dollar.
