Gold Slides as Oil Gains Reinforce Inflation Worries

Gold prices dropped on Tuesday as rising oil costs fueled inflation concerns and reinforced expectations of higher interest rates ahead of the Federal Reserve's policy meeting.

The spot gold price fell by 0.3% to $4,285.91 per ounce, while U.S. gold futures for December delivery decreased by 0.6% to $4,326.90.

Financial markets are anticipating a quarter-point rate hike by the Fed, which would push the benchmark rate to a range of 3.75%-4.00%. This comes after data showed that U.S. consumer prices accelerated in August, and a key measure of underlying inflation posted its largest increase in four months.

Oil prices continued to rise, with concerns over global supplies being exacerbated by the ongoing conflict in the Middle East.