Investing.com - Gold prices were down on Tuesday, but remained on track for a fourth-straight month of losses.
Comex gold futures for August delivery fell 0.11% to $1,219.90 a troy ounce as of 10:26 AM ET (14:26 GMT). Gold has fallen in recent months as a stronger dollar and rising interest rates weighed on the metal.
The Federal Reserve makes a policy decision Wednesday afternoon, but no rate hike is expected. Instead the Fed is likely to raise rates in September, with the chance of an increase at 87.8%.
Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.
The precious metal was also held down by a stronger dollar. Gold falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar.
News of renewed trade talks between the U.S. and China and strong economic data boosted the greenback. The two largest economies in the world have remained in a tit-for-tat battle over the past few months due to trade disagreements.
Meanwhile, consumer confidence rose in July while consumer spending increased in June, pointing to continued strength in the U.S. economy.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rallied 0.12% to 94.25.
Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.
Other metals were mixed on the Comex, with silver futures falling 0.05% to $15.530 a troy ounce. Among other precious metals, Platinum Futures increased 0.66% to $837.00 while Palladium Futures jumped 0.44% to $926.60 an ounce. Copper futures rose 0.75% to $2.813 a pound.