Gold prices declined ahead of the Fed's interest rate decision

Gold prices recorded a decline on Tuesday as investors maintained a cautious stance ahead of the US Federal Reserve's (Fed) interest rate decision this week. As of 07:01 TSI, spot gold lost 0.2% to fall to $4,010.39 per ounce.

US gold futures fell 0.4% to $4,023.57, while silver dropped 0.03% to $53.96 and platinum declined 0.08% to $1,529.27. Spot palladium rose 0.07% to $1,046.65, while palladium futures traded at $1,043.25, down 0.9%.

The Dollar Index rose 0.1% to 102.04. While markets evaluate expectations that the Fed will keep interest rates steady at this week's meeting, the probability of a rate hike is priced at approximately 10%. Although diplomatic efforts to reduce US-Iran tensions have eased pressure on energy markets, inflation concerns and interest rate uncertainty continue to impact precious metals.