Gold Prices Slip Amid Fed Rate Hike Expectations, Goldman Sachs' $4,900 Target Still in Play

Gold prices slipped on Tuesday as rising expectations of another Federal Reserve rate increase put pressure on bullion, despite renewed geopolitical tensions and a relatively subdued U.S. dollar.

The spot price of gold fell 0.4% to $4,428.54 an ounce by 0432 GMT, putting the $4,420-$4,426 region at the center of the near-term gold price outlook.

Markets are pricing a 66% probability of a Fed rate increase in September and an 89% chance of one by December after Chair Kevin Warsh signaled that additional tightening may be needed to control inflation.

A sustained break below $4,420 would shift the balance toward sellers and increase the risk of a deeper correction.