Gold loses its luster with the rise of USD

Gold prices fell on Wednesday to the lowest level in more than three weeks as the dollar rose ahead of a Federal Reserve decision on interest rates and monetary policy indicators later on Wednesday.

Gold fell in spot transactions 0.2 percent to $1,975.07 per ounce by 0711 GMT. US gold futures also fell 0.2 percent to $1,990.10.

The dollar rose 0.2 percent against competing currencies, which increases the cost of gold for holders of other currencies.

The Monetary Policy Committee responsible for setting interest rates at the Federal Reserve will issue a statement setting monetary policy and the interest rate decision at 1900 GMT, followed by a press conference by Bank Chairman Jerome Powell at 1930 GMT.

Traders widely expect the Federal Reserve to keep interest rates unchanged in a range between 5.25 and 5.50 percent this week, and they also expect about 75 percent to cut interest rates in May, according to the CME FeedWatch tool.

Market traders are also awaiting the monetary policy meetings of the European Central Bank and the Bank of England on Thursday.

As for other precious metals, silver continued its losses for the eighth session, falling by 0.6 percent to $22.62 per ounce, platinum fell by 0.3 percent to $926.55, and palladium by 0.7 to $972.95.