Gold is currently at $1,107.40 (+0.37%) near a one-month low as investors await a Federal Reserve meeting later this week. The central bank will announce its interest rate decision on Thursday. Uncertainty regarding forecasts for the result of the meeting persists and may weigh on prices, although bullion is unlikely to choose a direction before the decision is known.

Concerns over China's economy, mixed economic data and turmoil in stock markets have intensified doubts about the probability of a rate hike in the U.S. this month. Preliminary Reuters/Michigan Consumer Sentiment Index, which reflects consumer confidence in the U.S., fell to 85.7 in September from 91.9 reported previously, while economists had expected a moderate decline to 91.2.