Gold prices fell for the third day running on Tuesday after U.S. Treasury yields surged overnight ahead of the impending rate decision by the U.S. central bank.
Spot gold dipped 1.1 percent to $1,928.33 per ounce, while U.S. gold futures were down 1.6 percent at $1,930.53.
The Federal Reserve is widely expected to raise its benchmark interest rate target range by a quarter of a percentage point when it announces its interest-rate decision on Wednesday.
Hopes for some resolution through peace talks between Russia and Ukraine also added to gold’s woes.
In a significant effort to ease the simmering tension between Russia and Ukraine, the fourth round of peace negotiations will resume today after a ‘technical pause’, announced the top Ukrainian official.
“A technical pause has been taken in the negotiations until tomorrow. For additional work in the working subgroups and clarification of individual definitions. Negotiations continue.,” said Ukrainian negotiator Mykhailo Podolyak.