Gold prices edged lower on Tuesday as a stronger U.S. dollar reduced demand for the precious metal, while investors remained cautious ahead of the Federal Reserve’s policy decision. After rebounding in the previous session, bullion came under pressure as the dollar hovered near a one-month high, making gold more expensive for holders of other currencies. Market participants continue to view the upcoming Fed meeting as the key near-term catalyst, with expectations increasingly shifting toward the possibility of another interest rate increase later this year.

Beyond monetary policy, geopolitical developments remain on investors’ radar. Optimism over ongoing U.S.–Iran discussions has been tempered by fresh security incidents in the region, highlighting that tensions remain unresolved despite signs of diplomatic engagement. Markets are now awaiting guidance from the Federal Reserve on the future path of interest rates, as any indication of a less aggressive policy stance could provide renewed support for gold. Meanwhile, other precious metals also traded lower, with silver, platinum, and palladium extending losses alongside the broader pullback in the sector.