By Ira Iosebashvili
Gold prices sank Tuesday, weighed down by a stronger dollar.
Gold for August delivery closed down 0.3% at $1,299.40 a troy ounce on the Comex division of the New York Mercantile Exchange.
The WSJ Dollar Index was recently up 0.3% at 87.24. A strong dollar tends to weigh on gold, which is priced in the U.S. currency and becomes more expensive to foreign investors when the dollar rises.
Investors are also awaiting the conclusion of the Federal Reserve's monetary policy meeting on Wednesday.
Most market participants expect the Fed to raise rates on Wednesday. Investors will also be trying to determine whether the central bank plans to accelerate the pace of its rate increases this year. Expectations of higher rates can be a drag on prices for gold, which struggles to compete with yield-bearing assets when borrowing costs rise.
In base metals, copper for July delivery fell 0.2% to $3.2495 a pound.
Write to Ira Iosebashvili at [email protected]