Gold prices fell again in the European market on Tuesday to $ 1,300 per ounce, as USD rose and demand for safe haven assets fell, ahead of the Federal Reserve meeting, which is expected to raise US interest rates for the second time this year.

Gold prices fell 0.2% to 10:50 GMT to trade at $ 1297.55 an ounce from the opening level of $ 1300.08, and recorded the highest level of $ 1300.54, the lowest level of 1296.36 $.

Gold prices rose by 0.1% in the third daily gain respectively, and last week prices rose by 0.4%, the second gain in the last three weeks, based on the halt of the rise of the US currency against a basket of currencies.

Dollar index rose by 0.2% on Tuesday, continuing its third day rally, reversing the recovery of the US currency after a temporary halt last week, which is currently putting pressure on the price of gold and other metals denominated in dollars.

Gold chart

The risk appetite in global markets, especially equities and bond markets, has improved after meeting US President Donald Trump and North Korean leader Kim Jong-un in Singapore at a historic meeting aimed at narrowing differences over how to end the nuclear standoff on the Korean Peninsula.

Federal Reserve is set to begin its policy meeting on Wednesday to discuss monetary policy appropriate to developments in the US economy, with decisions on Wednesday, amid strong prospects for raising US interest rates for the second time this year.

The probability is 100% that interest rates will rise by a quarter percentage point to 2.0%, especially after recent strong data from the US labor market, and US monetary policymakers have previously confirmed a three-fold rate hike in 2018.

Investors, through the Federal Reserve’s monetary policy statement, Federal Economic Outlook and Jerome Powell’s statements, are looking for new evidence of the possibility of accelerating monetary policy tightening this year and raising interest rates four times.

Investors are looking forward to the release of key data on key US inflation levels in May, which would boost the likelihood of a four-year hike in US interest rates.

Gold holdings with the SPDR Gold Trust Fund The world’s largest gold-backed fund was unchanged yesterday at 828.76 metric tons, the lowest level since February 16.