Gold edged lower on Tuesday, losing its luster ahead of a two-day meeting of the U.S. Federal Reserve that is expected to deliver the second interest rate rise in a decade.
The Fed meeting starts later on Tuesday and markets have priced in a nearly 100 percent chance of a quarter of a percentage point increase. Higher interest rates generally dent demand for non-yielding bullion while strengthening the dollar, in which it is priced.
Spot gold fell 0.5 percent to $1,155.91 an ounce at 2:38 p.m EDT, after briefly touching a 10-month low on Monday.
U.S. gold futures for February delivery settled for $1,159 per ounce.