Gold prices fell on Tuesday as the U.S. dollar strengthened ahead of a Federal Reserve meeting at which the U.S. central bank is expected to raise interest rates for the first time this year.
The looming Fed meeting has helped to push gold down 4 percent from a 1-1/2-year high reached in January.
Higher U.S. interest rates are gold-negative because they raise bond yields, reducing the appeal of non-yielding bullion. They also tend to boost the dollar, making gold more expensive for users of other currencies.
Spot gold was trading 0.44 percent lower at $1,310.81 per ounce at 5:17 p.m. EST, while the dollar strengthened against a basket of currencies and U.S. bond yields rose. U.S. gold futures for April delivery settled down $5.90, or 0.5 percent, at $1,311.9 per ounce.
"Everyone's wondering how many dots will be on the plot for 2018. The market has priced in up to three hikes," said Rob Haworth, senior investment strategist for U.S. Bank Wealth Management.