Gold plunged on Monday, dropping from a key support level as traders became wary of assets that does not yield returns, ahead getting more hints on interest rate trajectory from Fed’s meeting scheduled to release later during the week.

Precious metals dips were pretty obvious as the greenback muted close to the highest level in two weeks while awaiting Fed’s stance, 10-year treasury yields topped 4%.

Spot gold slipped by 0.4% to $2,148.19 per ounce, while gold futures dropped 0.5% to $2,151.05 per ounce.

Eyes are now on the two consecutive days Fed’s meeting that will kick off on Wednesday, as the central bank is largely projected to maintain interest rate status.

However, any hints of interest rate trims will be closely monitored, particularly as February's higher-than-expected inflation numbers alerted investors to potential hawkish tone from the central bank.

These predictions also moved gold prices far from a peak touched previously in March. A plunge below the support level of $2,150, also alert for short term losses.