Gold Slumps Amid Rising Oil Costs and Rate Hike Expectations

Gold prices fell by 0.3% to $4,285.91 per ounce on Tuesday as rising oil costs and inflation concerns fueled expectations of a US Federal Reserve rate hike.

The US central bank will announce its policy decision at 2 pm EDT (1800 GMT) on Wednesday following a two-day meeting, with markets betting heavily that policymakers will lift the benchmark rate to a 3.75% to 4% range.

Data released last Friday showed US consumer prices accelerated in August, while underlying inflation posted its largest increase in four months.