Gold Falls as Stronger Dollar and Higher Yields Weigh on Bullion

Gold and silver prices fell on Tuesday ahead of the North American market open as a stronger US dollar, elevated Treasury yields, and caution before this week's Federal Reserve decision weighed on precious metals.

Spot gold was trading near $4,031.00 an ounce, down 1.09% on the session, while spot silver was trading near $57.19 an ounce, down 1.89%

The combination of a firmer US dollar and higher interest rates has left gold supported by the $4,000 floor but continues to face pressure from these factors

Despite softer inflation and weaker durable-goods orders earlier in the month, stronger retail sales, low jobless claims, and improved consumer sentiment have limited expectations for a clear shift in Federal Reserve policy, keeping interest rates at this week's meeting as markets still expect.