00:00Gold has slipped back toward $4,000 an ounce as the U.S. dollar strengthens.
00:04On Tuesday, spot gold fell 0.3% to 4,359, while U.S. gold futures dropped 0.5%.
00:12That follows a 4% weekly decline, gold's steepest in about four months.
00:17Why does the dollar matter?
00:19Gold is priced in U.S. dollars, so a stronger dollar can make it more expensive for buyers using other
00:25currencies.
00:26Interest rates matter, too.
00:27Gold pays no interest, making it less attractive when interest-bearing investments offer better returns.
00:34Investors are now watching the Federal Reserve's decision, expected Wednesday, and U.S. inflation data due Thursday.
00:40Markets are also pricing in the possibility of a December rate increase, though those expectations can change.
00:47If inflation remains a concern, interest rates could stay higher for longer.
00:51That may put further pressure on gold, but its next move is far from certain.
00:56Disclosure, this video contains stock footage and content created or enhanced using AI-assisted tools.
