Gold futures on the COMEX division of the New York Mercantile Exchange fell on Tuesday as the U.S. Federal Reserve's Federal Open Market Committee (FOMC) meeting began.
The most active gold contract for February delivery fell 6.8 U.S. dollars, or 0.58 percent, to settle at 1,159.00 dollars per ounce.
The market primarily focused on the beginning of the December FOMC meeting. Investors believe the Fed may raise rates from 0.50 to 0.75 during this month's meeting.
According to the CME Group's Fedwatch tool, the current implied probability of a hike from 0.50 to at least 0.75 is at 95 percent at the December meeting and 96 percent for the February meeting.
A Federal Reserve rate hike puts pressure on the precious metal because it triggers investors to move their assets away from gold because it is a non-interest-bearing asset.
Traders are looking to the rest of the week for the producer price index, retail sales, industrial production, FOMC press conference on Wednesday, consumer price index, weekly jobless claims, and Philadelphia Fed business outlook survey on Thursday, and the housing starts report on Friday.
Analysts believe the long-term outlook for gold is bleak as U.S. equities continue to climb, with the U.S. Dow Jones Industrial Average rising to near-20,000 levels.
Silver for March delivery fell 21 cents, or 1.22 percent, to close at 16.977 dollars per ounce. Platinum for January delivery added 3 dollars, or 0.32 percent, to close at 936.70 dollars per ounce.
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