Gold prices fell to a six-week low on Tuesday as the dollar firmed near 3-1/2-month highs, with investors awaiting direction on US monetary policy from the US Federal Reserve. Spot gold was down 0.3 percent at $1,310.77 per ounce at 0716 GMT. Prices hit $1,310.01 earlier in the session, their lowest since March 21.
US gold futures for June delivery declined 0.5 percent to $1,313.10 per ounce.
"The recent US dollar revival has negatively impact gold as the intensity of the USD correction has caught most traders by surprise," said Stephen Innes, APAC trading head at OANDA.
"Investor are also remaining cautious ahead of this week's two day FOMC meeting," said analysts at ANZ in a note.
"Support-wise (in gold), we are nearing some key technical levels with the 200 DMA at $1,304 and the psychological $1,300 level below that, expect broad support between $1,300 and the overnight low of $1,310," MKS PAMP said in a note. Most markets in Asia are closed for a Labour Day holiday.
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