The Federal Open Market Committee will meet on Tuesday and Wednesday this week, and investors expect a rate hike of 25 basis points.
Data released on Friday showed US consumer spending was unchanged in March while underlying inflationary pressures remained strong, which could lead the US central bank to raise interest rates again.
Gold prices rose more than 1% in April as renewed concerns over the US banking turmoil prompted investors to turn to safer assets.
The European Central Bank is expected to raise interest rates at its meeting next Thursday for the seventh consecutive time.
price movements
At 0531 GMT, spot gold fell 0.5% to $1980.42 an ounce, and US gold futures fell 0.5% to $1989.10.
The dollar index rose 0.2%, making the dollar-denominated metal too expensive for overseas buyers.
As for other precious metals, silver rose 0.1% to $25.06 an ounce, while platinum fell 0.7% to $1066.56 and palladium fell 0. 4% to $1495.06 an ounce, according to Reuters data.
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