Gold prices dipped on Monday as the U.S. dollar edged higher, and investors positioned for a series of major central bank policy meetings this week, with a likely pause in interest rate hikes by the U.S. Federal Reserve.

Spot gold fell 0.3% to $1,954.78 per ounce by 0235 GMT. U.S. gold futures fell 0.4% to $1,969.10.

Markets in Australia were closed on Monday due to a public holiday.

"While the Fed is expected to hold their interest rate, they are unlikely to deliver a dovish undertone required to tempt gold bulls back to the table in a meaningful way," said Matt Simpson, senior market analyst at City Index.

Gold prices climbed 0.7% for the week ended Friday, helped by a more-than-1% jump on Thursday after a surge in U.S. weekly jobless claims.

However, the dollar index held firm, making bullion less appealing for overseas buyers.

The release of U.S. consumer price index and producer price index data on Tuesday and Wednesday, respectively, are also on investors' radar, as a hotter CPI number could alter rate expectations.

Fed fund futures show a 71.2% probability that the U.S. central bank will keep its benchmark overnight interest rate in the 5.00%-5.25% range when its two-day meeting ends on Wednesday.

Lower rates lift the appeal of the zero-yield asset.

The Fed is more likely to announce "a pause with a hawkish warning" as they want to keep inflation expectations under pressure, Simpson said, adding, bullion does not appear to be in any hurry to break out of the $1,935 – $1,985 range.

In the physical market, retail gold demand slowed in top consumers China and India last week, forcing dealers to offer discounts, with volatile prices in India prompting buyers to delay purchases.

Spot silver shed 0.7% to $24.107 per ounce, platinum dropped 0.8% to $1,000.48.

Palladium fell 0.7% to $1,313.77 after hitting its lowest since May 2019 on Friday.

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Rashmi Aich and Sohini Goswami)