Gold prices slipped on Monday as the dollar held firm and investors braced for a slew of policy decisions from major global central banks including the US Federal Reserve this week.

Spot gold was down 0.4% to $2,147.89 per ounce, as of 0259 GMT.

US gold futures fell 0.5% to $2,151.30.

“A fairly hawkish outcome from the Fed has been baked in it shows a fairly strong consensus that there might only be one or two cuts this year,” said Kyle Rodda, a financial market analyst at Capital.com.

The Fed is considered certain to keep rates at 5.25%-5.5% at the end of its two-day meeting on Wednesday.

Gold price per tola falls Rs1,050 in Pakistan

But there is a possibility that the Fed might signal a higher-for-longer outlook on policy given the stickiness of inflation at both a consumer and producer level.

Traders are now pricing in an about 56% chance of a rate cut in June.

Higher interest rates reduce the appeal of holding non-yielding gold.

Last week, data showed that US consumer prices increased solidly in February and producer prices rose more than expected amid a surge in the cost of goods like gasoline and food.

“If we get a less hawkish outcome from the Fed, there’s every reason that we will see a weaker dollar, lower yields, and that could just fuel a rally and provide some fundamental impetus and then you are looking at $2,200 levels,” said Rodda.

The dollar held steady near a two-week high against its rivals, making gold more expensive for other currency holders.

Meanwhile, the Bank of Japan is expected to exit its ultra-dovish monetary policy at its two-day meeting ending on Tuesday.

The Bank of England will hold its meeting on Thursday and is expected to stay put on rates.

Spot platinum eased 0.1% to $932.45 per ounce, palladium was steady at $1,077.25, and silver dipped 0.6% to $25.01.