Gold Dips as Traders Wait on Sidelines

NEW YORK (TheStreet) -- Gold prices fell slightly on Monday as traders waited on the sidelines in anticipation of the Federal Reserve's two-day meeting this week.

Gold for August delivery was dipping $2.80 to $1615.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1625.80 and as low as $1613.10 an ounce, while the spot price was falling $4, according to Kitco's gold index.

"It's driven by anticipation of stimulus," said George Gero, precious metals strategist at RBC Wealth Management. "Traders are going to step back and see which way the wind blows."

Silver prices for September delivery were rising about 16 cents to $27.66 an ounce, while the U.S. dollar index was climbing 0.4% to $82.94.

Gold jumped some 2.5% last week on rumors that sentiment had increased among Fed members for additional quantitative easing in light of stagnant economic conditions and on European Central Bank President Mario Draghi's pledge to do "whatever it takes" to save the euro.

The week is packed with events like the Fed meeting that could shove gold decidedly in one direction. This week also will see first notice day, when traders have to make or take gold delivery; the European manufacturing index; an ECB monetary policy announcement and U.S. monthly labor data.

Hanging in the wings, according to Gero, is the possibility of more easing from China as well. But the summer doldrums and dollar fluctuation continue to add to uncertainty on Monday ahead of some bigger announcements later in the week.

Gold mining stocks opened mixed Monday. Eldorado Gold(EGO) was at $11.18, up 16 cents, or 1.5%, while Randgold Resources(GOLD) moved in the reverse direction to $91.01, down 34 cents, or 0.37%.

Among other mining stocks, Agnico-Eagle Mines(AEM) and Barrick Gold(ABX) were up 0.95% and 0.59%, respectively. Newmont Mining(NEM) was down 0.55%.

-- Written by Joe Deaux in New York.

>Contact by Email.