Gold fell on Tuesday, as rising crude oil prices heightened inflation worries and reinforced U.S. rate-hike expectations ahead of a Federal Reserve policy meeting.

Spot gold was down ​0.3% at $4,285.91 per ounce, as of 0015 GMT, after hitting its lowest in more than a month in the previous session. U.S. gold futures for December delivery were down 0.6% at $4,326.90.

The U.S. central ⁠bank ⁠will announce its policy decision at 2 p.m. EDT (1800 GMT) on Wednesday following the end of ​a two-day meeting.

Financial markets are betting heavily that Fed policymakers will lift their benchmark rate ​a quarter of a percentage point to a 3.75%-4.00% range and signal further tightening ahead.

Data on Friday showed U.S. consumer prices accelerated in August, while a ​key measure of underlying inflation posted its largest increase ⁠in four months.

Yemen's Iran-aligned Houthis launched a new attack on Saudi ​Arabia on ​Monday and Gulf Arab states postponed planned talks with Iran, ⁠raising concerns the Middle East conflict could spread further and ​threaten global oil supplies.

Oil prices extended gains. Higher ​energy costs can fuel inflationary pressures across the economy.

Though seen as a hedge against inflation and geopolitical risks, gold often loses appeal when rates increase as they raise the opportunity cost of holding non-yielding bullion.

Benchmark 10-year Treasury yields hit the key psychological level of 5% on Monday for the first ‌time since October 2023. The milestone is a threshold that analysts say could ripple through the U.S. economy and threaten the bull market ​in stocks ​by denting the relative ⁠appeal of U.S. equities.

Spot silver fell 0.4% to $62.99, platinum lost 0.4% at $1,752.85 and palladium ticked 1% lower to $1,279.75.

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