Retreat under

Gold fell after a weekly decline ahead of the Federal Reserve’s midweek meeting, where policymakers are expected to reaffirm their long-term stance on high interest rates. Bullion fell as much as 0.8 percent after losing more than 2 percent last week. Data on Friday showed that the U.S. central bank’s preferred measure of inflation rose sharply in March. Swap traders see just one Fed cut this year, well below the roughly six quarter-point cuts seen earlier this year. Higher rates are generally a negative for gold because it pays no interest. Gold also lost some support as safe-haven demand waned and U.S. Secretary of State Antony Blinken stepped up efforts to broker a ceasefire at meetings in the Middle East on Monday. Currency markets also took center stage amid speculation that Japanese officials could start buying yen to support the yen after it fell to its lowest level in more than 30 years. If they do, it could weaken the dollar and potentially boost bullion. Gold has gained nearly 13 percent this year, hitting a record high earlier this month despite the Fed’s timetable for cuts. The precious metal’s rally has been driven by central bank purchases, strong demand from Asian markets, particularly China, and rising geopolitical tensions from Ukraine to the Middle East. Spot gold fell 0.4 percent to $2,329.50 an ounce as of 10:05 a.m. Singapore time, its first weekly decline since mid-March. The Bloomberg Dollar Spot Index rose 0.1 percent after a two-week gain. Silver was flat, palladium fell, and platinum rose.