Spot gold fell 0.5 percent to $1,936.97 an ounce by 0935 GMT, after earlier hitting its highest level since April 2022 at $1,949.09. US gold futures fell 0.3 percent to $1,937.20.
The dollar index rose slightly, but remained near an eight-month low.
Investors are awaiting the announcement of US GDP estimates for the fourth quarter scheduled at 1330 GMT, as well as the publication of personal consumption expenditures data in the United States tomorrow, before the Federal Reserve policy meeting scheduled for January 31 and February 1. Traders will also look at the US weekly jobless claims data due later today.
Investors widely expect the Fed to slow rate hikes to 25 basis points from 50 basis points last December..
Reducing interest rate hikes tends to support gold prices, as it reduces the opportunity cost of owning the precious metal that does not yield a return..
As for other precious metals, spot silver fell 1.2 percent to $23.6137 an ounce, platinum fell 0.9 percent to $1030.25, and palladium fell 1.2 percent to $1677.40..
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