Investing.com - Gold prices slid to the lowest level in around a week in European trading on Tuesday, as investors prepared for a rate hike by the Federal Reserve.
Comex gold futures were at $1,268.40 a troy ounce by 2:30AM ET (0630GMT), after falling to its lowest since June 2 at $1,264.70 in overnight trade. Meanwhile, spot gold was at $1,266.32.
Gold prices settled lower on Monday for a fourth session in a row.
The Federal Reserve kicks off its two-day policy meeting on Tuesday, at which it is widely expected to raise the fed funds target range by a quarter point to a range between 1.0%-1.25%.
The U.S. central bank will release its latest forecasts for economic growth and interest rates, known as the "dot-plot".
Fed Chair Janet Yellen is to hold what will be a closely-watched press conference 30 minutes after the release of the Fed's statement, as investors look for fresh hints on the pace of further tightening in the months to come and next year.
Market players will also pay close attention to details of the Fed's plan to reduce its $4.5 trillion balance sheet later this year.
The median Fed policymaker forecast is for two more rate increases by year-end, after already raising its benchmark interest rate once this year, by a quarter percentage point in March.
But a recent run of disappointing U.S. economic data combined with growing uncertainty about the Trump administration's ability to pass tax and healthcare reforms sparked doubts over the Fed's ability to raise rates as much as it would like before the end of the year.
According to Investing.com’s Fed Rate Monitor Tool, conviction for a move beyond this week's widely expected rate hike has faded, with just 40% of market players expecting another rate increase later this year.
Also on the Comex, silver futures dipped 9.4 cents, or about 0.6%, to $16.85 a troy ounce, a level not seen since May 22.
Elsewhere in metals trading, platinum ticked up 0.3% to $946.95, while palladium added around 0.1% to $875.20 an ounce, after marking their highest finish since September 2014 in the prior session, buoyed by tight supplies.