Gold slips as firm dollar weighs; focus turns to Fed meeting
GLD•Other precious metals fall
Spot silver XAG= fell 1.6% to $57.48 per ounce, platinum XPT= lost 0.6% to $1,611.48 and palladium XPD= slid 1.4% to $1,274.10.
Fed meeting and geopolitical comments in focus
"We're oscillating in this narrow range between $3,950 and $4,200, and I think the market is just waiting for Fed signals," said Ilya Spivak, head of global macro at finance content network Tastylive.
The Fed will conclude its two-day policy meeting on Wednesday. Expectations that it will hold interest rates steady stand at 62%, while 38% of market participants expect at least a 25-basis-point rate hike, according to CME FedWatch, up from 16% a week earlier.
Markets are pricing in an 81% chance of a hike at the central bank's September meeting.
U.S. President Donald Trump on Monday called on the Fed to lower interest rates, saying the U.S. should have the lowest interest rate in the world.
Trump also said the U.S. was having "good talks" with Iran and there was a chance of a deal to resolve their conflict, but warned that strikes would resume if negotiations failed to deliver.
Tehran appeared to quickly test the pause in the U.S. military campaign, with Saudi Arabia, Jordan and Iraq reporting drone attacks on Monday.
Spivak said if the Fed meeting generates language that does not set the groundwork for a rate hike in September, gold is likely to rally above $4,200 per ounce.
