Gold is falling ahead of interest rate decision

Gold prices fell on Tuesday, but are on track for a third consecutive month of gains, as traders await the Federal Reserve’s interest rate decision this week.

Spot gold fell 0.3 percent to $1,917.56 an ounce by 0547 GMT, but it is on track for a monthly gain of more than five percent.

US gold futures also fell 0.3 percent to $1,933.60.

This comes while the dollar index is witnessing stability and is heading at the same time to record a decline for the fourth month in a row. A weak dollar makes the bullion priced in it more attractive to investors.

Most traders expect the Federal Reserve to taper its rate hike rate to 25 basis points on Wednesday at the end of its two-day monetary policy meeting. The Fed slowed the pace to 50 basis points in December after raising rates four times in a row by 75 basis points.

With regard to other precious metals, silver fell in spot transactions 0.7 percent to 23.43 dollars an ounce, platinum fell 0.5 percent to 1003.51 dollars, and palladium rose 0.2 percent to 1641.08 dollars.