28.07.202613:30:56UTC+00Gold Drops as Firm Dollar, Fed Uncertainty Weigh

Gold prices fell about 1% to around $4,030 an ounce on Tuesday, pressured by a stronger US dollar and heightened uncertainty ahead of Wednesday’s Federal Reserve policy decision. The dollar traded near a four-week high as markets assigned better than a one-in-three chance to a rate hike—an unusually high level of uncertainty so close to a Fed meeting, especially in light of repeated calls from President Donald Trump for lower interest rates.

Traders are also factoring in roughly an 80% probability of another rate increase in September, reinforcing expectations that borrowing costs could remain elevated. At the same time, oil prices slipped as hopes for easing tensions between the US and Iran dampened demand for safe-haven assets. On Monday, Trump said Washington was engaged in “good talks” with Tehran and that a deal to resolve the conflict was still possible, though he cautioned that military strikes could resume if negotiations break down.