Gold prices slipped on Monday, weighed down by a rebound in the US dollar and expectations of further interest rate hikes from the Federal Reserve to tame high inflation.

Spot gold was down 0.4% at $1,794.78 per ounce, as of 0352 GMT, after rising about 1.6% last week. US gold futures fell 0.3% to $1,810.

The dollar erased earlier losses to gain 0.1% against its rivals, making gold more expensive for buyers holding other currencies.

“Gold looks like in some consolidation here for a week or two before resuming the upward march towards $2,000 yet again. There may be even some who will feel the need to take profits to offset property portfolio weakness,” said Clifford Bennett, chief economist at ACY Securities.

“Gold is likely to be supported around $1,785. A slip to $1,760 cannot be ruled out, but this would represent fantastic long-term buying opportunity.”

Meanwhile, Richmond Fed Bank President Thomas Barkin said on Friday he wanted to raise interest rates further to bring inflation under control.

Gold gains, set for weekly rise

Investors will be watching out for minutes from the Fed’s last monetary policy meeting due on Wednesday for more clues on future rate hikes.Traders were pricing in around a 44.5% chance of a 75-basis-point rate hike by the Fed in September and a 57.5% chance of 50 bps.

Although gold is seen as a hedge against inflation, rising US interest rates dull non-yielding bullion’s appeal.

“Gold recorded its fourth consecutive weekly gain amid easing inflationary pressures. However, those same issues may ultimately be a negative,” ANZ analysts said in a note.

Indicative of sentiment, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.15% to 995.97 tonnes on Friday, their lowest since January.

Elsewhere, spot silver dropped 1% to $20.61 per ounce, platinum fell 0.9% to $953.67, and palladium was steady at $2,223.22.