Gold tumbled on Tuesday, remained stuck below its latest highs as concerns over an extended period of peaked interest rates spiked before the scheduled Fed’s meeting.

The languished safe haven demand also impacted, particularly as the latest news indicated fresh ceasefire negotiations between Hamas and Israel. This drove up the vulnerability of gold to rate-driven risks.

Spot prices traded over $100, just below a record peak touched previously in April.

Spot gold slumped by 0.4% to $2,326.45 per ounce, while gold futures slipped 0.9% to $2,337.30 per ounce.

But regardless of the latest dips, gold prices for April remained trading above 4%, stretching outstanding gains in March.

Attention is currently shifted on Fed’s meeting this week, where the central bank is projected on a broad scale to maintain interest rate. But it is predicted that Fed Chair Jerome Powell will deliver a hawkish tone regarding the interest rate trajectory, particularly after a slew of hot inflation figures.

Hints of stubborn inflation drove traders to discount the possibility of soon rate cuts, the central bank is currently predicted to initiate rate cuts by September or by the Q4 of 2024.