Gold Tumbles on Higher Yields and Oil Prices Amid Fed Uncertainty

Gold prices dropped by 0.4% on Tuesday to $4,397.42 an ounce as higher Treasury yields and rising oil prices weighed on the metal.

The US Federal Reserve's interest rate outlook will be a key factor in determining gold prices, with market analysts seeing a nearly 65% chance of the Fed holding rates steady in September.

Oil prices rose after Iran announced it would adopt a 'fully offensive' military posture following the breakdown of talks towards a permanent end to its war with the US.

ANZ analyst Soni Kumari said oil prices will remain a key factor weighing on gold as long as the situation in the Middle East remains uncertain.