* Spot gold held steady at $1,676.80 per ounce, as of 0037 GMT. US gold futures were up 0.5% at $1,686.70.
* The US Fed, at the conclusion of its two-day policy meeting on Wednesday, is expected to raise rates by 75 basis points, with markets even seeing a 19% chance of a 100 bps rise.
* The high interest rate environment increases the opportunity cost of holding unprofitable bullion.
* Gold prices weakened on Monday, hovering at a 29-month low on Friday, as the US dollar and Treasury Yields strengthened on expectations of a strong Fed rate hike.
* Although the dollar index is down 0.3%, it’s not far from a 20-year high. A stronger greenback makes bullion more expensive for holders of other currencies.
* Yields on the benchmark 10-year Treasury note, held at their highest level in more than a decade, rose on Monday.
* Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.30% to 957.95 tonnes on Monday from 960.85 tonnes on Friday.
* Spot silver lost 0.7% to $19.48 an ounce. Platinum fell 0.1% to $918.29 and palladium fell 1.5% to $2,191.75.
DATA / EVENT (GMT)
0115 China loan base rate 1 year / 5 years September
1230 US August housing start number
US Federal Reserve’s Federal Open Market Committee begins two-day interest rate meeting (through September 21)