Gold Slumps as Oil Prices Soar and Dollar Gains Strength

Gold prices have taken a hit in recent sessions due to the ongoing bearish macro backdrop. Rising oil prices are causing Treasury yields to increase, making it more expensive to hold gold. The US dollar is also gaining strength, which further puts pressure on gold.

The Fed's decision this Wednesday will be crucial for gold investors, as any hints of future rate hikes could hurt the metal and support the dollar. While a 25-basis-point hike is expected, the real question is what comes next - a one-off hike or the start of another tightening cycle?

Technical momentum also suggests that further losses are possible before the FOMC meeting. The key level to watch is $4,400, which has held as resistance despite several attempts to break above it.