Gold fails to sustain gains, FOMC eyed

• Gold ends the day slightly lower
• USd recovers ground as investors await Fed decision

Gold prices failed to hold onto gains during the New York session and ended the day with modest losses as the dollar managed to recover ground across the board.

Gold initially found haven-related demand and spot reached a daily peak of $1,348 an ounce, before falling back to the $1,335/oz area. XAU/USD the bounced to $1,340/oz where it trades presently, just a few cents below its opening price.

On Wednesday, the Federal Reserve will reveal its decision on monetary policy and its view on the pace of US economic growth and inflation, which could add pressure on gold if investors anticipate the central bank is moving closer to a rate hike.