Gold is currently at $1,063.20 (-0.02%) after it suffered a heavy loss in the previous session as investors prepared for the beginning of the Fed two-day policy meeting on Tuesday. The central bank of the U.S. is widely expected to raise rates to a range of 0.25%-0.50% from 0%-0.25%. Higher rates increase the opportunity cost of holding the non-interest paying precious metal and reduce demand for it. Bullion has already lost 9% of its price this year.

Assets in SPDR Gold Trust, the biggest gold exchange traded fund, are at their lowest since September 2008, while options data suggest that investors are ready for the price to decline to $1,000 an ounce.