Gold dropped for a third consecutive session on Tuesday to its lowest in almost two weeks, with investors focused on the upcoming US Federal Reserve policy meeting. A rise in global equity markets over the past few days has provided headwinds to the gold market, which has gained around 16 percent this year.
The yen advanced against the dollar and Asian stocks languished near the day's lows on Tuesday, after the Bank of Japan held policy steady as expected and offered a bleaker view of the country's economy in the face of lingering anxiety over slowing global growth.
Spot gold dropped 0.5 percent to 1,228.56 an ounce by 0649 GMT, while US gold slid 1.3 percent to $1,229.10 an ounce. Spot gold earlier in the session fell to $1,225.70 an ounce, its lowest since March 2. "We are waiting for the outcome of the Fed meeting and data coming from the United States is showing that the state of the economy is not bad," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers Ltd.
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