2017.12.1101:55:00UTC+00Gold Prices Steady Above 4-Month Low on Fed Rate Hike Expectations

Gold prices were steady above a four-month low on Monday, as expectations of higher interest rates in the United States buoyed the dollar.

Spot gold was flat at $1,248.06 per ounce, after reaching its lowest since July 26 at $1,243.71 on Dec. 7.

U.S. gold futures rose 0.1 percent to $1,250.20.

The dollar was steady, supported by stronger-than-expected U.S. jobs data and expectations of a rate hike by the US Federal Reserve.

The precious metal has declined by more than two percent so far in December, mostly weighed down by a fimer dollar on the back of expectations of higher rates and progress in tax reforms in the United States.

"Expectations for a rate hike at this week's FOMC meeting weighed on investor appetite for gold," ANZ analysts said.

The Federal Reserve is anticipated to hike benchmark interest rates at its two-day policy meeting on Tuesday, and is also seen to provide outlook on further rate increases in 2018.

Hedge funds and money managers trimmed their net long positions in COMEX gold and silver contracts in the week to Dec. 5, U.S. data showed.

According to Reuters technicals analyst Wang Tao, spot gold is aiming for $1,239 an ounce.

Among other metals, silver fell 0.2 percent to $15.80. Platinum rose 0.1 percent to $888.80 per ounce, after hitting its lowest since February 2016 the previous week. Palladium dropped 0.2 percent to $1,004.15.