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Gold was little changed on Tuesday, after inching up in the previous session, ahead of a key meeting of the US Federal Reserve that begins later in the day. Spot gold was steady at $1,162.40 an ounce by 8.12am, after climbing 0.4% on Monday. US gold futures were down 0.1% at $1,165.

Spot prices recovered from a 10-month low of $1,151.34 an ounce touched in the previous session as US Treasury yields came off their highs and the US dollar fell ahead of the Federal Reserve meeting.

The dollar eased against the yen on Tuesday, coming off a 10-month high, as a surge in Treasury yields was tempered for the time being. The US currency was also capped by the prevailing wait-and-see mood ahead of the Fed meet.

“With 3% growth, inflation picking up and an incoming administration that is not that impressed with the job the Fed is doing, we could see the central bank signalling a much more hawkish tone going forward,” INTL FCStone analyst Edward Meir said in a note.

Gold was little changed on Tuesday, after inching up in the previous session, ahead of a key meeting of the US Federal Reserve that begins later in the day. Spot gold was steady at $1,162.40 an ounce by 8.12am, after climbing 0.4% on Monday. US gold futures were down 0.1% at $1,165.

The dollar eased against the yen on Tuesday, coming off a 10-month high, as a surge in Treasury yields was tempered for the time being. The US currency was also capped by the prevailing wait-and-see mood ahead of the Fed meet.

“If we are correct, we should see a rise in rates and a stronger dollar—the two could spark a fresh selloff in gold to the $1,140 level we are targeting for the precious metal for some time in December.” Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

“With the increasing likelihood that the Fed will hike rates at the FOMC meeting later this week, investors continue to offload the precious metal,” ANZ said in a note. The Fed is widely expected to raise interest rates for the first time in 2016 at a two-day meeting, with markets pricing in a nearly 100% chance of a quarter percentage point increase to the Fed’s target range of 0.25 to 0.50%.

Gold prices posted a modest bounce after touching a nine-month low to start the trading week. From here, a daily close back above the 14% Fibonacci expansion at 1162.04 opens the door for a retest of support-turned-resistance at 1180.17. Alternatively, a push below the 23.6% level at 1146.15 exposes the 38.2% Fib at 1120.36.

Reference: Reuters,Nasdaq