Gold prices slipped on Monday, pressured by a firmer dollar as investors braced for aggressive interest rate hikes by the U.S. Federal Reserve and other central banks this week in an effort to tame high inflation.

Spot gold was down 0.8% at $1,661.65 an ounce at 0724 GMT. U.S. gold futures fell 0.8% to $1,670.80.

Trading is expected to be light, with the bullion market in London - the world's biggest trade centre for physical gold - closed for Queen Elizabeth's funeral.

The dollar index gained 0.3%, with the stronger greenback making bullion more expensive for buyers with other currencies.

"We'll see some choppy, sideways trade leading up to the FOMC meeting, with $1,680 likely being a pivotal level for traders over the near term," said City Index analyst Matt Simpson, referring to the Fed's imminent policy meeting.

"A hawkish (interest rate) hike would be another nail in the gold coffin and will likely send prices down to the $1,600–$1,650 range."

The Fed's Federal Open Market Committee is set to begin its two-day meeting on interest rates on Sept. 20 and announce its decision the following day.

Markets are fully pricing in a rate increase of 75 basis points by the U.S. central bank.

Most of the banks meeting this week - from Switzerland to South Africa - are expected to hike, with markets split on whether the Bank of England will go by 50 or 75 basis points.

U.S. consumers' near-term inflation expectations fell to a one-year low in September, easing fears that the Fed could raise rates by a full percentage point.

Gold is viewed as a safe-haven investment in the face of inflation woes, but high interest rates increase the opportunity cost of holding non-yielding bullion.

"Rising geopolitical and economic risks are doing little to entice haven buying, with the U.S. dollar still the asset of choice," ANZ analysts said in a note.

In other precious metals, spot silver lost 1.5% to $19.26 an ounce, platinum fell 1% to $897.90 and palladium was down 1.5% at $2,103.25.

(Reporting by Brijesh Patel and Ashitha Shivaprasad in Bengaluru Editing by Sherry Jacob-Phillips and David Goodman )