Gold holds in a tight range ahead of Fed meeting

This week, gold is trading in a tight range as investors refrained from making large bets in the run-up to the U.S. Federal Reserve meeting. The central bank is expected to announce an interest rate hike following the session.

Experts forecast the Fed to raise rates by 75 basis points as of September 21. However, a 100 basis-point surge can’t be shrugged off. Market expectations strengthened after last week's data release, pointing to the U.S. inflation to reach a 40-year high. This also strengthened the dollar and led to significant losses in the metals market.

A series of rate hikes by the Fed has led to a recent drop in gold value compared to the first half of the year. The price of the yellow metal fell to $1,700. This level is seen as one of the last support points before a steeper roll-off.