Gold futures finished sharply lower on Tuesday, marking a one month low rate, ahead of Fed decision. The US Federal Reserve is widely expected to raise interest rates by 75 basis points at the end of Wednesday's meeting, in the wake of hefty rise in US consumer price index for May which rose to the highest since 1981 by about 8.6%. Moreover, strength in dollar and bond yields fuelled the downward trend.
Gold futures for August fell by $18.30 or 1% to settle at $ 1813.50 ounce on the Comex division of the New York Mercantile. Spot gold dipped by 0.4% to $1,811.59 per ounce.