Gold has fallen back below the $4,000-per-ounce mark as oil prices rise and investors position themselves ahead of the Federal Reserve’s monetary policy meeting, which opened on Tuesday and is due to conclude on Wednesday with an interest rate decision.

The precious metal retreated 0.46% to $3,998.39 per ounce, having managed only limited gains in the previous session. Gold is now approaching the mid-July lows it touched on Friday, when investors unwound commodity positions to cover losses in the artificial intelligence sector.

“Gold will need to find a floor, as higher oil prices keep inflation risks in focus and the possibility of further monetary tightening weighs on the metal,” wrote Suki Cooper, Standard Chartered’s global head of Commodities Research, in a note cited by Bloomberg.

Swap markets are pricing in less than a 10% probability that the Fed will move to raise interest rates at this week’s meeting. A tightening, however, is expected at the December meeting, with investors pricing in at least two further rate increases by the end of 2027.