2024.03.1909:50:00UTC+00Gold Inches Lower As Dollar, Yields Rise Ahead Of Fed Meeting

Gold prices edged lower on Tuesday as the dollar remained stubbornly strong and Treasury yields hovered near four-month highs ahead of Wednesday's FOMC rate decision.

Spot gold dipped 0.3 percent to $2,154.56 per ounce, while U.S. gold futures were down 0.3 percent at $2,157.40.

A two-day policy meeting of the U.S. Federal Reserve gets underway later today after recent data showed U.S. inflation remained sticky.

The U.S. central bank is almost certain to leave its benchmark interest rate unchanged, but the focus will be about what Fed officials say about lowering rates.

Recent hotter-than-expected consumer and producer price inflation readings have reduced optimism about the likelihood of the Fed's first-rate cut coming in June.

Fed Chair Jerome Powell and his colleagues will update their economic and rate projections on Wednesday for the first time since December.

The U.S. economic calendar remains light today, with a report on new residential construction likely to attract some attention.