Gold dips as market awaits cues from Fed meeting

LONDON: Gold dipped on Tuesday on technical selling, although losses were limited as most investors stayed on the sidelines ahead of a US Federal Reserve meeting that should provide signals on the pace of future monetary tightening.

The Fed is widely expected to hike interest rates when it concludes its meeting on Wednesday, although investors will focus on any fresh hints on the pace of hikes this year and its assessment of the economy and inflation.

"Obviously ahead of the meeting people aren't building significant positions If anything, they're expecting a dovish Fed because recent (US) economic data has been weak," said Fawad Razaqzada, analyst at FOREX.com.

A lower-than-expected pace of rate hikes would weigh on the dollar, making dollar-priced gold cheaper for non-US investors.