Gold Dips as Stronger Dollar and Higher Yields Apply Pressure

Gold prices dipped on Tuesday as the U.S. dollar strengthened and Treasury yields climbed, creating downward pressure on the precious metal. The losses were somewhat tempered by a reduction in expectations of an imminent interest rate hike by the Federal Reserve.

Spot gold fell by 0.3%, reaching $4,128.69 per ounce by 0155 GMT. Meanwhile, U.S. gold futures saw little change, holding steady at $4,156.00.

The firmer dollar and higher yields made gold less attractive to investors, as the metal typically moves inversely to the dollar's strength. However, the limited losses suggest that some market participants remain cautious about the Federal Reserve's next move.