Dollar Strength Weighs on Gold Prices Ahead of Fed Meeting

Gold prices dropped on Tuesday due to a strengthening US dollar. The precious metal fell 0.7 percent to $4,045.89 per ounce by 0448 GMT after gaining as much as 1 percent on Monday.

US gold futures for August delivery also lost 0.8 percent to $4,046.20. Other precious metals followed suit with spot silver falling 2 percent to $57.23 an ounce, platinum losing 0.9 percent to $1,605.93, and palladium sliding 1.6 percent to $1,270.97.

The market's focus is now on the Federal Reserve's upcoming policy decision, which is expected to provide clues on the interest rate outlook.