Gold prices fell Tuesday, as the Federal Reserve kicked off a two-day meeting that many investors believe will culminate in a rate increase, according to Dow Jones.

Gold for February delivery was recently down 0.5% at $1160.20 a troy ounce on the Comex division of the New York Mercantile Exchange.

Fed-funds futures showed that traders assigned a 97.2% probability that the central bank will raise rates at the end of its monetary policy meeting Wednesday, according to the CME. Gold struggles to compete with yield-bearing investments when rates rise.

"Gold may not be able to have a clear shot at going substantially higher until the conclusion of the (Fed meeting) on Wednesday," analysts at HSBC wrote in a note to investors.