By Ambar Warrick 

-- Gold prices hit a 10-day low on Tuesday, with broader metal markets losing more ground as the dollar rebounded ahead of a widely expected Federal Reserve interest rate hike. 

fell 0.1% to $1,631.70 an ounce, while fell 0.4% to $1,634.75 an ounce by 20:05 ET (00:05 GMT). Both instruments were trading at a 10-day low, after tumbling for a seventh straight month in October, 

Bullion prices are set to lose more ground as caution kicks in ahead of a meeting that is set to conclude on Wednesday. The central bank is widely expected to hike interest rates by 75 basis points (bps).

But the Fed’s outlook on monetary policy will be closely watched, amid some expectations that the central bank will soften its hawkish stance. Markets are mixed over the possibility of a , especially amid expectations that high interest rates are likely to erode economic growth.

Still, U.S. interest rates are at their highest level since the 2008 financial crisis, and are expected to keep the dollar upbeat and gold subdued in the coming months. Rising ramped up the opportunity cost of holding gold this year, which saw investors pivot out of the yellow metal. 

Most other precious metals logged similar losses, and are also expected to weaken further as interest rates rise.

The surged 0.8% on Monday, extending its recovery into a fourth straight session as investors positioned for the rate hike. Strength in the greenback has also greatly pressured metal markets. 

Among industrial metals, were flat at $3.3812 a pound on Tuesday after tumbling 1.5% in the prior session. 

Weaker-than-expected from China, the world’s largest copper importer, brewed renewed concerns over slowing demand in the country.

New COVID outbreaks in the country are also expected to disrupt economic activity, which could further weigh on commodity demand. 

Copper prices fell sharply this year, recently hitting a two-year low as concerns over China, rising inflation and interest rates dented the prospect of demand.

But prices of the red metal are expected to benefit from tightening supply in the coming months, amid lower output from Chile and U.S. sanctions on Russian producers.