Gold Dips Below $4,000 Ahead Of Fed Decision

(RTTNews) - Gold prices dipped below $4,000 an ounce on Tuesday as elevated oil prices fueled inflation concerns ahead of this week's Federal Reserve interest-rate decision.

Spot gold dropped half a percent to $3,997.85 an ounce while U.S. gold futures were down 0.7 percent at $4,010.40.

The U.S. dollar nudged higher against major peers ahead of the Federal Reserve's monetary policy announcement due on Wednesday.

Markets currently see a 10 percent chance of a rate hike this week, with a quarter point rate hike widely expected at the Fed's December meeting.

The accompanying statement will be in the intense spotlight as investors look for any hints policymakers give on their outlook.

Elsewhere, the European Central Bank is expected to leave interest rates unchanged on Thursday but rising energy prices keep further hikes in December and 2027 in play.

The Bank of Japan rounds the week on Friday and is widely expected to keep rates on hold.

Meanwhile, oil prices remain elevated despite pulling back from recent highs amid hopes for regional diplomacy in the Middle East.

Tensions in the Gulf region continued, with a Houthi official claiming that Egypt's authorization of military support for Saudi Arabia amounted to a "declaration of war" against Yemen.

Media reports suggest that Lebanese armed group Hezbollah is preparing for a possible resumption of hostilities with Israel after receiving financial support from Iran.

CNN reported on Monday, citing two U.S. officials that U.S. forces in West Asia are ready to launch new, potentially, major, military operation against Iran "within 96 hours of receiving" an order from President Trump and that the scope of operation could go beyond limited strikes on Iranian radars, missile launchers and other military assets that can be quickly rebuilt.