Ahead of the FOMC meeting, USD is under pressure. Investors took profits on its recent gains. The index closed below 20Dsma, but managed to hold above the 100Dsma.

Deutsche Bank strategist Dominic Konstam: market showed "concern for the Fed's policy failures," yield curve flattening and a decline in the stock market and commodities is evidence, based on the dollar the Fed's rate hike, "is to bring down inflation effect" ; the Fed's first rate hike will be postponed until 2016 because of "the risk of a premature rate hike far outweigh the risk of waiting."

HSBC: Federal Reserve coming closer to the interest rate hike, a stronger dollar, low inflation, China's and India's weak demand for physical gold and other factors weigh on gold prices.

Technical view: The 50Dsma is found at 96.00 and 100Dema is seen at 95.60. Intraday support is found at 96.10 and 96.00. The weekly support is seen at 96.30 (Monday's low). On an intraday basis, in case if bulls lose the level of 96.00, the index is likely to drag towards 95.70 and 95.30. It is likely to close above 95.60 by the end of the day. Until the index closes above 95.60, buyers will enjoy the upper hand.