Gold eases on firmer dollar ahead of Fed decision

Gold prices fell on Tuesday as the US dollar strengthened, with investors awaiting guidance from the Federal Reserve on interest rates. The spot price of gold fell 0.2 percent to $4,007.29 per ounce, while December futures for US gold dropped 0.5 percent to $4,019.70. A steady US dollar made gold less attractive for overseas buyers.

Analyst Ilya Spivak noted that gold was "digesting" within its recent trading range, and a break below $3,900 could trigger a significant decline, possibly reaching the $3,800 level. The metal had fallen below $4,000 for the first time since mid-July last week, marking its worst weekly performance in about four months due to rising energy prices and heightened inflation concerns.

Despite Federal Reserve policymakers signaling no further rate hikes this week, inflation worries and expectations of future rate increases dampened gold's appeal as a non-yielding asset. The Saudi-led coalition in Yemen claimed to have destroyed three ballistic missiles and drones launched by Houthi rebels. Silver, platinum, and palladium also saw declines in their respective spot prices.