Dollar Strength Weighs on Gold as Fed Meeting Looms

Gold prices slipped by 0.5% on Tuesday as the US dollar strengthened to near a one-month high, making greenback-priced bullion more expensive for holders of other currencies.

The Federal Reserve's upcoming policy meeting is expected to hold interest rates steady, but markets are pricing in an 81% chance for a hike at the central bank's September meeting. Expectations for a rate hike of at least 25 basis points have increased to 36.3%, up from 16% last week.

US President Donald Trump called on the Federal Reserve to lower interest rates, saying the US should have the lowest interest rate in the world.