Gold prices fell on Tuesday, pressured by a rising U.S. dollar as markets await the Federal Reserve’s upcoming monetary policy decision for cues on interest rate prospects.
Spot gold fell 0.7% to $4,044.81 per ounce by 02:50 GMT, after gaining about 1% on Monday. U.S. gold futures for August delivery slipped 0.8% to $4,045.40.
The dollar held near a one-month high, making dollar-priced gold more expensive for holders of other currencies.
“We are swinging in this tight range between $3,950 and $4,200, and I think the market is just waiting for signals from the Federal Reserve,” said Ilya Spivak, head of global macro research at Tastylive financial content network.
The U.S. Federal Reserve will conclude its two-day monetary policy meeting on Wednesday. CME Group’s FedWatch tool shows a 62% probability that the Federal Reserve will keep interest rates unchanged, while 38% of market participants expect a rate hike of at least 25 basis points, up from 16% a week ago.
Markets are pricing in an 81% chance of an interest rate hike at the central bank’s September meeting.
Among other precious metals, spot silver dropped 1.9% to $57.30 per ounce, platinum fell 1% to $1,605.14, and palladium slipped 1.6% to $1,271.09.
Reuters
