Gold prices declined on Tuesday as a stronger U.S. dollar pressured bullion, while investors awaited the Federal Reserve's policy meeting later in the week for guidance on future interest rate moves. Spot gold fell 0.4% to $4,000.52 per ounce by 10:42 a.m. GMT, with U.S. gold futures for December delivery down 0.6% at $4,014.40 per ounce.

The U.S. dollar gained 0.3% against a basket of major currencies, reaching its highest level in nearly two weeks. A stronger dollar generally weighs on gold prices by making the metal more costly for holders of other currencies. Market participants closely monitored the Fed’s upcoming meeting, where the central bank is widely expected to keep interest rates unchanged but may signal its stance on potential future hikes.

Global monetary policy remained in focus as other major central banks, including the European Central Bank and Bank of England, held their policy meetings this week. Rising interest rates tend to raise the opportunity cost of holding non-yielding assets like gold, which can exert downward pressure on prices.

Other precious metals also experienced losses on Tuesday. Spot silver dropped 1.3% to $53.23 per ounce, platinum declined 1.7% to $1,501.30, and palladium fell 2.9% to $1,019.50 per ounce. These movements reflected broader concerns about tightening monetary policies and their impact on metal markets.