Gold prices slip on dollar strength, profit-taking

Gold prices fell on Tuesday as the dollar strengthened and some investors locked in profits ahead of the US Federal Reserve meeting next week.

Spot gold was down 0.5 percent at $1,417.80 per ounce, as of 0402 GMT (0702am Riyadh time). US gold futures dipped 0.6 percent to $1,418.40 an ounce.

"Last week, we had lot of talks by the Federal Reserve on rate cut, market consensus was bit overwhelmingly and pushed prices way far," said Benjamin Lu, analyst, Phillip Futures.

"Expect gold to trade bit lower but hold above $1,400 level as consensus are still towards a rate cut," he added.

Weighing on bullion's appeal, the dollar index rose 0.2 percent to a near one-week high, making gold expensive for holders of other currencies.

Gold prices briefly surpassed $1,450 mark for the first time in more than six years last week after New York Fed President John Williams boosted hopes of an aggressive rate cut.

However, the New York Fed said the speech was not about potential action at the upcoming meeting.

On the technical side, spot gold may fall into a range of $1,401-$1,409 per ounce as it has broken a support at $1,422, according to Reuters technical analyst Wang Tao.

Among other precious metals, silver fell 0.7 percent to $16.23 per ounce and platinum eased 0.4 percent to $841. Palladium dipped 0.6 percent at $1,519.01 an ounce.