Gold retreats as Fed week kicks off, copper reels from China woes

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Gold prices fell slightly on Monday as anticipation of a key Federal Reserve meeting kept investors wary at the beginning of the week, while copper prices nursed steep losses on concerns over slowing demand in China.

A recovery in the dollar, ahead of the Fed meeting, also somewhat pressured metal markets, with the greenback pulling further away from 15-month lows hit earlier in July.

Still, bullion prices remained within sight of a two-month peak, amid increasing bets that the Fed will potentially signal a pause in future rate hikes, after one last hike this week.

Spot gold fell slightly to $1,961.66 an ounce, while gold futures fell 0.2% to $1,963.35 an ounce by 20:44 ET (00:44 GMT).