The MCX gold August futures contract dipped 0.56% to Rs 1,42,100 per 10 grams, while the MCX silver September futures dropped 1.42% to Rs 2,18,025 per kg.In the global markets too, gold dipped days before a possibly divisive decision on US Federal Reserve interest rates, while an uncertain halt in Middle East tensions soothed inflation fears.

The precious metal dropped as much as 0.8% to near $4,040 an ounce, erasing a modest gain in the previous session. Traders are looking at the Federal Reserve’s rate decision Wednesday, with policymakers remain divided between June’s tamer-than-expected inflation data and the latest jump in oil prices that accompanied a flare-up in fighting between the US and Iran.

Gold ETFs showed mixed movements during the session. Edelweiss Gold ETF slipped by 1.36% to Rs 141.45, while Groww Gold ETF fell 1.43% to Rs 13.82. On the positive side, Motilal Oswal Gold ETF gained 0.51% to reach Rs 142.30, and Angel One Gold ETF rose by 0.60% to Rs 13.38.