Gold Slips as Fed Rate Hike Bets and Oil Offset Weaker Dollar

Gold prices declined on Tuesday as elevated bets for a Federal Reserve rate hike and rising oil prices offset support from a weaker dollar.

The spot price of gold fell by 0.7% to $4,375.66 per ounce, while the December contract dropped 1.3% to $4,419.64 per ounce.

The decline in gold prices comes as oil prices continued their upward trend due to ongoing tensions between the US and Iran.

Average Brent crude oil prices surged by 0.1% to $97.13 per barrel, having earlier reached as high as $99.45 per barrel.

The escalation of military action in the Middle East has led to concerns about supply disruptions and higher energy costs.