BENGALURU — Gold rose on Monday, after touching a two-week low in the previous session, as the dollar softened, but caution ahead of the US Federal Reserve’s monetary policy decision kept a lid on prices.The Fed is set for a lively debate when it meets on September 20-21 and could give a clear signal of an interest rate rise to come even if it follows market expectations for a pause this month.Economists polled by Reuters are increasingly expecting a rate hike this year, but only in December."Gold has seesawed for the last week purely because of the fact that market watchers are waiting for the Fed meeting later this week," said OCBC Bank analyst Barnabas Gan. "Do expect gold prices to be extremely volatile towards the meeting."Higher interest rates increase the opportunity cost of holding noninterest-yielding gold.Spot gold was up 0.4% at $1,315.60/oz by 4.53am GMT, not far from a low of $1,306.26 hit on Friday, the weakest since September 1.US gold futures rose 0.7% to $1,318.90/o...
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