Gold Slips Below $4,100 as Dollar Strengthens and Fed Decision Looms

Gold's price slipped below $4,100 on Tuesday after opening at $4,083, up just 0.1% from Monday's settlement.

The metal failed to hold above $4,100 for the first time in two weeks, with futures trading at $4,046.20 and spot gold priced at $4,045.89 an ounce.

Analysts point out that a stronger dollar is behind the decline in gold's price, as it raises the cost of bullion for buyers outside the US.

The dollar has strengthened to a one-month high, with the euro near 1.1300 and the yen at fresh July lows around 1.3270.

While falling Treasury yields normally support non-yielding assets like gold, the dollar's bid is coming from risk aversion rather than any deterioration in demand for gold.