Gold Falls as Fed Meeting Begins, Silver Steadies Amid Oil Price Surge

The gold price fell while the silver price steadied in early U.S. trading on Tuesday as the Federal Reserve's policy meeting began.

Oil prices were elevated, Treasury yields near multiyear highs, and markets heavily positioned for a 25-basis-point rate hike, which has pushed the bias further toward a Fed-hike trade.

The interest-rate futures are pricing an 86% to 93% probability of a 25-basis-point hike at this week's Fed meeting, with the 10-year Treasury yield briefly reaching 5.04%, its highest level since 2007.