Dollar Strength Drives Down Gold as Fed Meeting Looms

Gold prices declined on Tuesday due to a stronger US dollar. Spot gold fell 0.5% to $4,056.03 per ounce by 0110 GMT, while US gold futures for August delivery lost 0.5% to $4,056.70.

The Federal Reserve's upcoming policy decision has markets looking for clues on the interest rate outlook. Despite President Trump's optimism about a potential deal with Iran, Tehran quickly tested the pause in US military attacks.

Meanwhile, the US dollar held at a one-month high as traders weighed a slim chance of a rate hike at the Federal Reserve meeting. The dollar index edged up 0.03% to 101.55.