Gold declines as traders weigh prospects for interest-rate hike

Gold declined ahead of a potentially divisive decision on US interest rates later this week, while a fragile pause in Middle East hostilities soothed inflation fears.

Bullion fell as much as 1 percent to trade near $4,040 an ounce, erasing a modest gain in the previous session.

Traders are positioning themselves for the Federal Reserve’s rate decision Wednesday, with policymakers torn between June’s tamer-than-expected inflation reading and the more recent rise in oil prices that accompanied a f ...