Gold Prices Slip Below $4,300 as Markets Reassess Fed Policy Outlook

Gold prices slipped below $4,300 an ounce on Tuesday as investors reassessed the impact of higher energy prices and Treasury yields on the Federal Reserve's policy outlook.

The U.S. Dollar Index rose 0.2% to 99.63, while oil prices moved higher after Saudi Arabia shut its East-West pipeline following attacks last week.

Markets now price a 92% probability of a Fed rate increase this week, as higher energy costs raise the risk that inflation will remain elevated.

Higher borrowing costs tend to weigh on gold because bullion does not pay interest, making yield-generating assets more attractive when rates rise.