Gold plunged on Tuesday triggered by solid greenback dollar and investor nervousness before Fed's meeting, where the overall metal markets also moved lower.

Prior the start of the two-day Fed meeting on Wednesday, where interest rates are largely anticipated to be raised by 25 basis points, the yellow metal signalled a slow start to the week.

Spot gold dropped 0.1% at $1,922.10 per ounce while gold futures were steadied at $1,921.75 per ounce.

Markets are still unsure of when U.S. borrowing rates will peak, though, as inflation is still significantly higher than the Fed's yearly target. Fed has also issued a warning that persistent inflation could lead to rates staying higher for longer period.

The greenback strengthened this week versus its major pairs, which impacted the yellow metal negatively.

This year, economic development is anticipated to be slowed by a combination of high interest rates and inflation, increasing the possibility of a recession in the biggest economies. Gold has leveraged the safe haven demand.

Silver prices decreased 0.3% to $23.668 per ounce, while platinum futures were unchanged at $1.017.15 per ounce.