Gold Falls on Firm Dollar Amid Anticipation of Fed Rate Decision

Gold prices dipped on Tuesday as investors awaited the Federal Reserve's interest rate decision. Spot gold fell 1.2% to $4,026.21 per ounce by 1200 GMT, while US gold futures for August delivery slid 1.3% to $4,025.70.

Rhona O'Connell, head of market analysis at StoneX, said that gold has been holding a tight range based on support in the $4,000 region since late June. This suggests that there will be a breakout at some stage, she added.

The US dollar steadied near a four-week high, making greenback-priced bullion expensive for buyers overseas. The Federal Reserve's decision is expected to impact gold prices as higher interest rates tend to diminish its appeal due to its non-yielding characteristic.