Gold futures settled lower on Tuesday as the dollar firmed against most of its major rivals ahead of the Federal Reserve’s monetary policy announcement.
The Fed, which will unveil its policy on Wednesday, is widely expected to announce plans to begin gradually scaling back its $120 billion in monthly bond purchases by mid-November or December.
The language of the Fed’s statement is likely to be in focus as traders look for clues about the outlook for interest rates amid concerns about the high rate of inflation.
The dollar index climbed to 94.13, gaining nearly 0.3%.
Gold futures for December ended down by $6.40 or about 0.3% at $1,789.40 an ounce.
Silver futures for December closed lower by $0.566 or 2% at $23.507 an ounce, while Copper futures for December settled at $4.3660 per pound, down $0.0275 from the previous close.
The Bank of England’s meeting takes place on Thursday, with think-tanks divided on which way the rate decision would go.
Earlier today, the Reserve Bank of Australia kept the nation’s cash rate at the record low 0.1% for the 12th month in a row, but dumped one of its key stimulus measures, known as “yield curve control”, signaling that borrowing costs may have to rise sooner than expected.