Gold declines due to strength of dollar

Gold prices declined for a sixth straight session on Monday to hit their lowest in more than three weeks.

It has been affected by the strength of the dollar and expectations for further increases in interest rates from the U.S. Federal Reserve to tame surging inflation.

Spot gold decreased 0.1 percent at $1,746.06 per ounce, as of 0131 GMT, after hitting its lowest since July 28 at $1,743.83 in early Asian trading. The metal lost nearly 3 percent last week.

U.S. gold futures was down 0.2 percent to $1,758.80.

The dollar was up 0.1 percent to a more one-month high against its rivals, making gold more expensive for buyers holding other currencies.

The Fed will increase rates by 50 basis points in September amid expectations inflation has peaked and growing recession worries, according to economists in a Reuters poll.

Traders are now putting prices around a 46.5 percent chance of a 75-basis-point rate hike in September and a 53.5 percent chance of a 50-bp increase.