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Gold drifted lower on Tuesday in Asia with sparse regional data and investors squarely-focused on this week's review of interest rates by the Federal Reserve.

Gold prices were ending the U.S. day session weaker Monday, but up from the daily low. No new bullish fundamental developments are allowing gold prices to languish in a sideways to lower drift. The recent rallies in world stock markets have also hurt the safe-haven metal, as such indicates there is not much risk aversion in the marketplace at present. August Comex gold was last down $3.40 an ounce at $1,320.00.September Comex silver was last down $0.014 at $19.675 an ounce.

The key “outside markets” on Monday saw the U.S. dollar index weaker and Nymex crude oil prices lower. Nymex crude oil futures hit a three-month low Monday are hovering just above $43.00 a barrel. If oil prices continue to trend lower, such would be a significantly bearish factor for the entire raw commodity sector, including the precious metals.

The focal point of the marketplace this week will be the U.S. Federal Reserve’s Open Market Committee (FOMC) that meets Tuesday and Wednesday, and the Bank of Japan monetary policy meeting that takes place Thursday and Friday. No change is expected in U.S. monetary policy this week, but it is expected the BOJ will announce a new monetary policy stimulus package.

Gold would surge under a Donald Trump presidency, but it would take a lot to beat the metal’s rally under Jimmy Carter, according to a report by ABN Amro.

“[Trump’s] rhetoric and possibly policy actions could create domestic and international uncertainty at best, and upheaval at worst,” said Georgette Boele, a strategist at ABN Amro.

ABN Amro believes that gold prices could surge by over 40% to $1,850 a troy ounce under a President Trump.

"Despite two consecutive weeks of scaling back speculative net length in gold, positions on COMEX remain relatively elevated at 94 percent of the record," said UBS Strategist Joni Teves.

"This could make gold vulnerable in the near-term, should the market increasingly price in a more hawkish Fed."

Speculators cut their record bullish bets on COMEX gold contracts for a second straight week, U.S. data showed on Friday.