Gold Falls on Stronger Dollar and Higher Yields Ahead of Fed Decision

Gold prices fell on Tuesday ahead of the North American market open due to a stronger US dollar, higher Treasury yields, and caution before this week's Federal Reserve decision.

The spot gold price was trading near $4,031.00 an ounce at the time of writing, down 1.09% on the session.

Spot silver prices were also lower, trading near $57.19 an ounce, down 1.89%.

The firmer US dollar and elevated Treasury yields, which stood at 4.62% for the 10-year yield and 4.31% for the 2-year yield, weighed on precious metals.

Market positioning following recent US economic data has shifted from dovish to less dovish, limiting expectations for a clear shift in Federal Reserve policy, despite softer inflation and weaker durable-goods orders previously pushing Treasury yields lower.