Picture used for illustrative purpose. File

Gold prices erased earlier gains to trade lower on Monday due to an uptick in the dollar, while investors looked to Federal Reserve policymakers' speeches this week for signals on their approach to inflation.

Spot Gold eased 0.1% to $1,947.19 per ounce by 0810 GMT. US Gold  futures fell 0.5% lower to $1,953.

The dollar index bounced up 0.1% against its rivals, making Gold more expensive for holders of other currencies.

Investors are now awaiting speeches by Fed committee members, including Chairman Jerome Powell, who will appear before Congressional committees later this week.

"The focus on Jerome Powell will be how much he is going to try to sway the Senate to provide more stimulus," said Stephen Innes, chief market strategist at AxiCorp.

More stimulus in the United States could lead to a weaker dollar and that would be positive for Gold, he added. 

READ MORE 

Oil prices slip on potential return of Libyan output

Asian markets weighed by virus spikes and stimulus gridlock

Sweden boosts pandemic-hit economy by $12 billion in 2021 budget

Gold has surged about 29% this year as governments and central banks worldwide released unprecedented stimulus measures to revive their coronavirus-battered economies.

But rising economic concerns with resurgence of COVID-19 cases globally cushioned some of bullion's losses. Major European cities announced restrictions again, while worldwide cases crossed 30.78 million.

" Gold to trade range-bound between $1,930 and $1,970 during the week," said Jigar Trivedi, commodities analyst at Mumbai broker Anand Rathi Shares.

Development of a coronavirus vaccine and dollar strength could trigger a correction in Gold in the near term, he added.

Meanwhile, data from the Commodities Futures Trading Commission showed that speculators raised their net long position in COMEX Gold by 10,622 contracts to 165,251 in the week ended Sept. 15.

Among other precious metals, silver fell 0.5% to $26.62 per ounce, platinum rose 0.4% to $931.18 and palladium inched 0.1% higher to $2,358.48.