The flat movement of gold prices remained constant amid investor caution ahead of the FOMC policy meeting.
During the Asian session, spot gold traded slightly lower at $1,664 per ounce, while gold futures were gloomy at $1,672 per ounce.
Expectations of a 75 basis point increase in interest rates by the Federal Reserve (Fed) at the September policy meeting continue to dampen currency market movements including gold.
While the king of the US dollar currency has the advantage of extending the strengthening momentum around the 20-year high level which is also supported by higher US bond yields.
Ahead of the FOMC decision, the 2-year yield surged to a 15-year high, while the 10-year yield remained firm at a 3-month high of 3.55%.
With the possibility of 100 basis points also triggered, the market will also scrutinize any statements from Fed policymakers regarding inflation and the next rate expectations from the Fed.
