2023.01.3109:03:00UTC+00Gold Prices Decline As IMF Lifts Global Growth Forecast

Gold prices fell sharply on Tuesday and the dollar ticked higher, while Treasury yields declined as a two-day policy meeting of the Federal Reserve gets underway later today.

Spot gold fell a little over 1 percent to $1,903.71 per ounce while U.S. gold futures were down 0.9 percent at $1,905.30.

The dollar strengthened against its major rivals but was on course for its fourth consecutive monthly loss.

The Fed will announce its interest-rate decision on Wednesday. Economists expect a 25-basis-points rate hike to a range of 4.50 percent to 4.75 percent amid signs of slowing inflation.

Meanwhile, The European Central Bank and the Bank of England are expected to raise interest rates by 50 basis points at their monetary policy meetings on Thursday.

Inn economic releases, Canada GDP data for November, as well as U.S. consumer confidence index for January and FHFA's house price index and S&P/Case-Shiller home price index for November will be featured in the New York session.

Eurostat is scheduled to issue euro area preliminary flash GDP estimate for the fourth quarter later in the day. Economists expect the currency bloc to shrink 0.1 percent sequentially after rising 0.3 percent in the third quarter.

Earlier today, the International Monetary Fund (IMF) upgraded its forecast for world growth this year to 2.9 percent from a previous prediction of 2.7 percent in October.