Gold is currently at $1,121.90 (+0.08%) near a 2-1/2-week low amid ongoing uncertainty over Fed interest rate decision at a September 16-17 meeting. Bullion is likely to remain in a tight range until this meeting.

Gold has failed to find a strong safe-haven demand despite the recent turmoil in stock markets due to concerns over the Chinese economy, signaling that U.S. monetary policy is the key fundamental factor for its direction.