Gold prices declined in European trade after a two-day hiatus from gains after rebounding from 29-month lows, amid ongoing pressures from higher US 10-year treasury yields.
Such developments come ahead of the Federal Reserve's meeting, expected to raise interest rates by 75 basis points for the third meeting in a row.
Gold Prices Today
Gold prices fell over 0.3% to $1,670 an ounce, after rising 0.1% yesterday away from 29-month lows at $1,654 an ounce.
US Bonds
US 10-year treasury yields rose for the second session by 0.5%, almost hitting 11-year highs at 3.518%, scaled yesterday, in turn pressuring gold prices.
Two-year treasury yields also rallied 0.8% on track for the ninth profit in a row, marking October 2007 highs at 3.973%, and almost passing 4% for the first time in 25 years.
The Federal Reserve
Later Today, the Federal Reserve will convene to discuss policies, and tomorrow, it's expected to decide on hiking interest rates by 75 basis points to 3.25%, the third such increase in a row.
Such a hike would come following recent US inflation data, with analysts now expecting a 100% chance of a 0.75% rate hike at least, and a 37% chance of a 1% rate hike.
Global Central Banks
Aside from Fed's meeting, other major central banks in Britain, Japan, and Switzerland are convening as well next Thursday.
It's unlikely the BoJ will change its current ultra-easy policies, while the Swiss central bank is expected to raise interest rates by 75 basis points to 0.5%.
Bank of England is also expected to increase interest rates, either by 50 or 75 basis points.
Estimates
Now analysts expect gold prices to hover near $1,680 an ounce in the short term, and potentially head for $1,600 after the Fed's policy decisions tomorrow.
The SPDR
Gold holdings at the SPDR Gold Trust fell 2.9 tones yesterday to a total of 960.56 tones, the lowest since March 2020.