Investing.com– Gold prices moved little in Asian trade on Monday, nursing some losses from recent sessions as investors remained biased towards the dollar before the Federal Reserve’s final meeting for the year. 

Among industrial metals, copper prices were also pressured by a strong dollar, with mixed economic readings from China doing little to inspire confidence in demand. 

Gold saw some bids last week on the prospect of lower U.S. interest rates in the near-term. But this was offset by uncertainty over the long-term outlook for rates, which the Fed is likely to elaborate on this week.

rose 0.2% to $2,653.47 an ounce, while expiring in February fell 0.2% to $2,671.05 an ounce by 23:02 ET (04:02 GMT). 

Gold under pressure as Fed meeting looms 

Traders remained wary of the yellow metal before a Fed meeting this week. The central bank is widely expected to cut rates by 25 basis points at the conclusion of the meeting on Wednesday, bringing rates down by a total 100 bps in 2024. 

But the central bank’s outlook on rates will be closely watched, especially in light of recent data showing inflation grew stickier in November, while the labor market remained strong. 

The Fed is expected to signal more caution over future easing, which could keep rates high in the long-term. 

High rates bode poorly for gold and other non-yielding assets, given that they increase the opportunity cost of investing in the yellow metal. The dollar firmed on this notion, pressuring gold prices through the past week.

Still, analysts at ANZ said they remained bullish on gold, forecasting spot prices at $2,900 an ounce in 2025. While gains are expected to moderate in the coming year, high economic and geopolitical risks are still expected to keep safe haven demand in play.

Other precious metals fell on Monday. fell 0.4% to $921.75 an ounce, while fell 0.1% to $31.005 an ounce. 

Copper dips as China data disappoints 

Benchmark on the London Metal Exchange fell 0.2% to $9,044.0 a ton, while February fell 0.4% to $4.1780 a pound. 

The red metal extended losses after data on Monday painted a mixed picture of the Chinese economy. While grew as expected in November, growth slowed sharply, while growth disappointed. 

The readings came as a recent top-level political meeting in the country yielded scant cues on Beijing’s plans for more stimulus.

China is the world’s biggest copper importer, with concerns over slowing demand, amid a weakening economy, being a major weight on copper prices.