Gold slumped to a six-week low on Tuesday as firmer dollar dented the appeal of the yellow metal as an alternative investment.
The precious metal traded lower at $1308.54 an ounce after recording a low of $1307.86, the lowest level since March 20.
Further pressure from the dollar could force gold to report its third straight weekly loss this week, where bullion prices have become under pressure since hitting a peak of $1355.70 on April 18.
Gold could find support near $1307, but a breach to that level may send the prices lower towards $1300.
The U.S. dollar index extended its gains to 92.01, the highest level in 3-1/2-months, as the recent improvement in U.S. economic data has raised expectations of four rate hikes this year.
The Federal Reserve will start their two-day policy meeting on Tuesday, where policymakers will probably hold interest rates this month.
However, investors will focus on the FOMC statement as they will try to look for clues about hiking the borrowing cost in June.
At the end of the week, the U.S. will release its high-relevance jobs report that may show a job creation pace of 189,000 jobs in April.
European shares rose today despite some concerns after President Trump’s decision to extend tariffs exemption agreement for one month instead of giving the EU full exemption from steel and aluminum tariffs.
Crude oil slipped to $67.88 a barrel, compared to the session’s open at