Gold Prices Tumble Below $4,100 as Dollar Strengthens

Gold prices fell below $4,100 in every session since July 14, a two-week ceiling that has been repeatedly tested and rejected. On Tuesday, spot gold traded at $4,045.89 an ounce, with August futures at $4,046.20, both grinding toward the $4,000 handle through the European session.

The dollar's strength is driving the decline in gold prices, with the currency sitting at a one-month high. The euro is pinned near the mid-1.1300s and sterling at fresh July lows around 1.3270, making it more expensive for buyers outside the United States to purchase bullion.

The Federal Reserve's decision on Wednesday will likely influence gold prices. Market-implied odds of a quarter-point increase stand at 35.8%, up from 25.77% a week earlier. A hike in interest rates would make dollar-denominated assets more attractive, potentially pushing gold prices lower.