Gold prices dipped on Monday, giving up early gains as the US dollar rose on expectations that the US Federal Reserve will raise interest rates at its policymaking meeting next week. The losses, however, remained modest amid jitters over the resignation of Italian Prime Minister Matteo Renzi after he lost a referendum on constitutional reform. Spot gold slipped 0.3 percent to USD 1,173.56 an ounce by 0226 GMT. US gold futures fell 0.2 percent to USD 1,175.80 per ounce. "Looks like people are buying the US dollar and that is in turn prompting selling in gold," said Yuichi Ikemizu, head of commodity trading at Standard Bank in Tokyo. "People bought gold after the Italian referendum and it looks like they are selling back." Investors and Europe's politicians fear victory for Italy's opposition 'No' camp could cause political instability and renewed turmoil for Italy's banks, pushing the euro zone towards a fresh crisis. The euro sank to 20-months lows in Asia on Monday after the Italian vote.
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