Gold futures prices dropped lower on Tuesday due to subdued demand from jewelers, retailers and industries turned their attention to the results of two-day meeting of the Federal Reserve on Wednesday as a expectations for an interest rate continued to weigh on the precious metal.
Gold was trading at $1,160.75 a troy ounce, not far from the lows of $1,153.00 set on Monday, the weakest since February 4.
Spot gold prices in the international markets inched slightly higher to $1,163.12 an ounce in Singapore.
US dollar rose against a basket of six other major currencies, with the rise in the US dollar index at 101.04.
It is anticipated widely the Fed to raising interest rates for the first time since the conclusion of the meeting, with investors pricing in a 100% chance of the increase, according to Investing.com.
Gold and silver futures were trading in the red on the Multi Commodity Exchange (MCX) in early trade on Tuesday.
Yellow metal was trading 0.21 per cent, or Rs 58, down at Rs 27,608 per 10 gm on account of subdued demand from jewellers, retailers and industries ahead of the US Fed rate hike decision.
US central bank would also announce the recent economic outlook, markets will monitor closely for signals on inflation expectations and as fast as expected from raising interest rates in 2017.
Investors remained cautious amid fears that the Fed has struck a cautious tone about the outlook for next year’s policy tightening.
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