Gold Prices Tumble Amid Higher Oil Costs, Hawkish Fed Outlook

Gold and silver prices are under pressure due to higher crude oil prices, a stronger US dollar, and rising bond yields ahead of the Federal Reserve's two-day policy meeting. The COMEX gold futures price fell by 0.28% to $4,339.60 an ounce, while the COMEX silver price declined by 0.58% to $63.765 an ounce.

The elevated crude oil prices and rising bond yields can complicate the inflation outlook, making it less likely for central banks to ease monetary policy. This could weigh on gold and silver because they do not generate interest income.

The US dollar index rose by 0.05% to 99.53, making dollar-denominated bullion more expensive for buyers using other currencies. Higher bond yields also increase the opportunity cost of holding non-yielding assets such as gold.