Gold for August delivery, the most actively traded contract, shed $12.00 to $1,563.70 an ounce. Yesterday, gold settled lower even as investors anxiously awaited the outcome of the two-day Federal Reserve policy meeting, with hopes resting on possible hints of further quantitative easing.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,271.24 tons.
This morning, the U.S. dollar advanced to a fresh 2-year high versus the euro and trading near a one- month high against sterling. The buck was ticking lower versus the yen and edging up against the Swiss franc.
In economic news, euro zone industrial sector output bounced back unexpectedly in May. Industrial production rose 0.6 percent month-on-month in May, following a 1.1 percent decrease in April. The outcome was better than economists' expectations for a flat reading.
Elsewhere, wholesale price inflation in Germany eased to 1.1 percent in June from 1.7 percent in May, the Federal Statistical Office said. During the month, wholesale prices of metal and metal ores as well as semi-finished products fell 5.1 percent annually.
The prices of silver and platinum were trading lower in morning deals.
From the U.S., the Labor Department will release its weekly jobless claims report at 8.30 a.m ET. Economists expect claims to edge up to 375,000 from 374,000 in the previous week.
