Gold Price Falls as Dollar Stabilizes, Traders Wait for Fed Signals

Gold prices fell on Tuesday as the dollar clawed back some ground, but losses were capped by expectations the Federal Reserve may pause its rapid path of interest rate hikes.

At 0955 GMT, spot gold was down 0.5% at $1,640.90 an ounce, while US gold futures were down 0.5% at $1,645.00.

Expectations of a less hawkish Fed had put pressure on the dollar, but the greenback is rising again, pushing gold in the opposite direction, said Ricardo Evangelista, senior analyst at ActivTrades.

Bullion is likely to hold a relatively tight range as the dollar is also expected to stabilize as the next Fed meeting approaches, he added.

The dollar index was somewhat off balance as the yuan tumbled, recovering slightly from a drop to its lowest since Oct. 6 in the previous session.

The rise in the US currency makes the gold metal unattractive to foreign buyers.

In other precious metals, spot silver fell 2.2% to $18.84 an ounce; platinum fell 1.4% to $911.49; and palladium was up 0.2% at $1,971.19.

With information from Reuters