Gold prices changed little on Tuesday, remaining well below crucial levels as the dollar strengthened and demand for gold slumped.

Spot gold muted at $1,982.31 per ounce, while gold future slipped by 0.1% to $1,991.15 per ounce.

At the end of a two-day consecutive meeting on Wednesday, the Fed is highly projected to raise interest rates by 25 basis points. However, markets are divided on whether the Fed will signal a pause in its rate hike cycle.

This kept the demand for gold in a tight range, as rising interest rates raise the opportunity cost of keeping non-yielding assets. The dollar gained on Monday, as did US Treasury yields.

For over three weeks, gold has fought to retain the $2,000 per ounce mark, as the yellow metal consolidated gains after rising to near-record highs earlier in April. The yellow metal's future direction is likely to be dictated by the Fed's interest rate stance, as well as any fresh developments in the banking crisis.