Gold slips as firm dollar weighs; focus turns to Fed meeting

Gold prices edged lower on Tuesday, pressured by a stronger dollar, while markets looked to the Federal Reserve’s upcoming policy decision for clues on ​the interest rate outlook.

Spot gold fell 0.5% to $4,056.03 per ounce ‌by 0110 GMT.

US gold futures for August delivery lost 0.5% to $4,056.70.

President Donald Trump said on Monday the United States was having “good talks” with Iran and there was ​a chance of a deal over their conflict, but warned that ​U.S. strikes would resume if the negotiations failed to deliver.

Despite ⁠Trump’s optimism, Tehran appeared to quickly test the pause in the US ​military campaign, with Saudi Arabia, Jordan and Iraq reporting drone attacks on Monday.

The dollar held near a one-month high as traders weighed chances of a rate hike at the Federal Reserve’s upcoming meeting, making greenback-priced bullion more expensive for holders of other ​currencies.

The U.S. Federal Reserve will begin its two-day policy meeting on ​Tuesday, and is expected to hold interest rates steady on Wednesday.

Expectations for a rate ‌hike ⁠of at least 25 basis points are pegged at 36.3%, according to CME FedWatch, up from 16% a week ago. Markets are pricing in an 81% chance for a hike at the central bank’s September meeting.

President Donald Trump on ​Monday called on the ​Federal Reserve to lower ⁠interest rates, saying the U.S. should have the lowest interest rate in the world.

China’s net gold imports via ​Hong Kong more than doubled year-on-year in June, but slipped over ​5% ⁠from the previous month, data from Hong Kong’s Census and Statistics Department showed on Monday.

Gold Fields submitted a “lease-renewal proposal” to Ghana this month for its Tarkwa gold ⁠mine, the ​company said on Monday.

Spot silver fell ​1.7% to $57.39 per ounce, platinum lost 0.8% to $1,608.20 and palladium slid 1.5% to $1,272.25.