Gold Prices Plummet Ahead of Fed Policy Meeting

Gold prices dropped on Tuesday ahead of the Federal Reserve's two-day policy meeting, which kicked off today. Markets are expecting the US central bank to raise interest rates.

The dollar index rose by 0.25% to 99.63, as measured against a basket of six major currencies. Traders see a roughly 93% probability that the Fed will increase interest rates, according to the CME Group's FedWatch Tool.

The Bank of Japan is also set to raise interest rates on Friday due to higher energy prices and few signs of easing tensions in the Middle East.