Gold down ahead of Fed interest rate decision

Gold prices fell today, Tuesday, but are heading for gains for the third month in a row, while dealers await the Federal Reserve (US Central Bank) interest rate decision this week.

According to Reuters, gold fell in spot transactions by 0.3 percent to $1917.56 an ounce by 0547 GMT, but it is heading for monthly gains of more than five percent.

US gold futures also fell 0.3 percent to $1,933.60.

This comes while the dollar index is witnessing stability and is heading at the same time to record a decline for the fourth month in a row. The weakness of the dollar makes the bullion priced in it more attractive to investors.

Most traders expect the Federal Reserve to taper its rate hike rate to 25 basis points on Wednesday at the end of its two-day monetary policy meeting. The US central slowed the pace to 50 basis points in December after raising interest four times in a row by 75 basis points.

With regard to other precious metals, silver fell in spot transactions 0.7 percent to 23.43 dollars an ounce, platinum fell 0.5 percent to 1003.51 dollars, and palladium rose 0.2 percent to 1641.08 dollars.

The three metals are heading for a monthly decline.