Gold Falls as Dollar Strengthens, Rate-Hike Bets Weigh

Gold prices dropped on Monday, pressured by a stronger U.S. dollar and expectations of higher interest rates. The decline came even as oil prices fell. Lower oil prices often support gold, but that effect was outweighed by currency and rate factors. A stronger dollar makes gold more expensive for buyers using other currencies, reducing demand. At the same time, expectations of rate hikes by the U.S. Federal Reserve pulled investors away from gold, which pays no interest. Investors are watching U.S. monetary policy closely for signals on the pace of future rate increases.