During the morning trading session on Monday in European markets, gold prices began the week with a moderate decline. Investors expect the results of the Fed meeting and monitor the development of the political situation in the UK.
By 07:45 UK time, gold futures fell $ 2.20 or approximately 0.2% to $ 1269.17 per troy ounce.
On Friday, gold prices declined for the third consecutive session, fixing during the session a decrease to a weekly low of $ 1,266.7.
The attention of market players this week will be focused on the two-day meeting of the Fed, which will end on Wednesday.
Given that the overwhelming majority forecasts that the US central bank will raise the interest rate, investors will be more interested in new clues about further tightening of monetary policy in the coming months and next year.
Market players will also pay close attention to the details of the Fed's plan to reduce this year's balance of $ 4.5 trillion.
The Fed projected two more interest rate hikes by the end of the year after it was already raised the rate by 0.25% as a result of the FOMC committee meeting in March.
However, the recent series of weak US economic reports and the growing uncertainty about the ability of the Trump administration to implement tax and medical reforms have heightened investor doubts that the Fed will once again raise interest rates after the hike of this week.
Investors lost confidence in the third interest rate increase this year. According to a forecast, only 40% of market players expect a third rate hike by the end of this year.
In addition to the Fed statement this week, investors expects reports on the US inflation data, retail sales, the producer price index, industrial production, the number of building permits, the volume of construction of new homes, the number of initial applications for unemployment benefits, consumer sentiment, and Activity in the manufacturing sector of Philadelphia and New York.
In the UK, the first meeting of the new cabinet of ministers should be held after the re-election of Theresa May to the post of Prime Minister without a majority in parliament at the end of the last week.
According to media reports, the new government can accept a soft option for Britain's withdrawal from the EU despite previous statements and intentions of the leader of the Conservative Party.
The start of negotiations on Brexit is scheduled for next Monday.
At COMEX, silver futures fell $ 0.117 (about 0.7%) to $ 17.1 per troy ounce.
Platinum gained 0.4% to $ 944.15, while palladium went up 2% to $ 872.88 an ounce, approaching the peak in 16 years, recorded on Friday.
Copper futures fell $ 0.009 to $ 2.640 per pound.