Gold prices edged lower on Tuesday, pressured by a stronger dollar, while markets looked to the Federal Reserve’s upcoming policy decision for clues on the interest rate outlook.FUNDAMENTALS* Spot gold fell 0.5% to $4,056.03 per ounce by 0110 GMT. U.S. gold futures for August delivery lost 0.5% to $4,056.70.* President Donald Trump said on Monday the United States was having “good talks” with Iran and there was a chance of a deal over their conflict, but warned that U.S. strikes would resume if the negotiations failed to deliver.* Despite Trump’s optimism, Tehran appeared to quickly test the pause in the U.S. military campaign, with Saudi Arabia, Jordan and Iraq reporting drone attacks on Monday.* The dollar held near a one-month high as traders weighed chances of a rate hike at the Federal Reserve’s upcoming meeting, making greenback-priced bullion more expensive for holders of other currencies.* The U.S. Federal Reserve will begin its two-day policy meeting on Tuesday, and is expected to hold interest rates steady on Wednesday.* Expectations for a rate hike of at least 25 basis points are pegged at 36.3%, according to CME FedWatch, opens new tab, up from 16% a week ago. Markets are pricing in an 81% chance for a hike at the central bank’s September meeting.* President Donald Trump on Monday called on the Federal Reserve to lower interest rates, saying the U.S. should have the lowest interest rate in the world.* China’s net gold imports via Hong Kong more than doubled year-on-year in June, but slipped over 5% from the previous month, data from Hong Kong’s Census and Statistics Department showed on Monday.* Gold Fields (GFIJ.J), opens new tab submitted a “lease-renewal proposal” to Ghana this month for its Tarkwa gold mine, the company said on Monday.* Spot silver fell 1.7% to $57.39 per ounce, platinum lost 0.8% to $1,608.20 and palladium slid 1.5% to $1,272.25.