Gold prices fell on Tuesday as the dollar strengthened and some investors locked in profits ahead of the U.S. Federal Reserve meeting next week.
Spot gold was down 0.5% at $1,417.80 per ounce, as of 0402 GMT. U.S. gold futures dipped 0.6% to $1,418.40 an ounce.
"Last week, we had a lot of talks by the Federal Reserve on the rate cut, market consensus was bit overwhelmingly and pushed prices way far," said Benjamin Lu, analyst, Phillip Futures.
"Expect gold to trade a bit lower but hold above $1,400 level as consensus are still towards a rate cut."
Weighing on bullion's appeal, the dollar index rose 0.2% to a near one-week high, making gold expensive for holders of other currencies.
Gold prices briefly surpassed $1,450 mark for the first time in more than six-years last week after New York Fed President John Williams boosted hopes of an aggressive rate cut.
However, the New York Fed said the speech was not about potential action at the upcoming meeting.
The U.S. central bank is widely expected to lower interest rate at its meeting ending July 31, but expectations for a larger 50-basis point cut have waxed and waned due to mixed signals from Fed policymakers.
0 Comments