Gold held near a three-month low as investors weighed the outlook for higher U.S. interest rates before the Federal Reserve begins a two-day meeting.

Bullion for immediate delivery traded at $1,156.23 an ounce by 8:09 a.m. in Singapore from $1,154.81 on Monday, according to Bloomberg generic pricing. The precious metal slumped to $1,147.72 on March 11, the lowest level since Dec. 1.

The dollar surged to the highest in a decade last week and hedge funds exited gold at the fastest pace in more than four months as employers added more jobs than expected in February and the unemployment rate fell to the lowest in almost seven years. The Bloomberg Dollar Spot Index fell on Monday after climbing for a fourth week in the period ended March 13.

Gold for April delivery added 0.2 percent to $1,155.10 on the Comex. Assets in exchange-traded products backed by bullion fell 21.9 metric tons last week, the most since November.

Silver for immediate delivery was little changed at $15.648 an ounce.

Source: Bloomberg