Gold edged down a bit on Tuesday, but lingered over key support levels prior to this week's pivotal Fed meeting, as markets continued to be generally wary of precious metal investments.

Spot gold dipped 0.1% to $2,158.26 per ounce, while gold futures slumped by 0.1% to $2,161.35 per ounce.

This week, gold prices gained some of the ground they had lost, and on Monday, they reclaimed the $2,150 per ounce support level. Despite ongoing uncertainty regarding the Fed's position, the price of gold also stayed considerably below the record highs reached earlier in March.

The robustness of the dollar served as a primary factor weighing down gold prices, with traders maintaining a strong preference for the greenback due to expectations surrounding the Fed meeting and dovish signals from the Bank of Japan.

Fed is largely projected to maintain interest rate status during the 2 consecutive days meeting on Wednesday. However, markets are worried from possible hawkish tone from the central bank.