Gold prices hovered close to their lowest in over three months on Tuesday as traders waited for this week’s Federal Reserve policy meeting to gauge the timing of an U.S. rate hike, while platinum stood near its lowest in 5-1/2 years.
Spot gold had edged up 0.1 percent to $1,154.96 an ounce by 0043 GMT, close to last week’s levels of $1,147.10, the lowest since Dec. 1. Platinum, the worst performing precious metal of the year, slumped over 3 percent to a session low of $1,102.50, after falling to a July 2009 trough of $1,101 on Monday.
Expectations that the Fed would begin increasing interest rates as soon as June on the back of a strong economy have helped the dollar. Precious metals are hurting from the strength in the dollar, which is trading at a near-12-year high against a basket of major currencies.