Gold Slips Below $4,050 as Dollar Strengthens on Geopolitics, FOMC Ahead

Gold prices extended their decline during the Asian session, with XAU/USD breaking below the $4,050 mark. The move follows a failed attempt to sustain gains above the $4,100 level a day earlier.

Geopolitical concerns are providing support to the US dollar, which typically weighs on the yellow metal. Markets are also positioning cautiously ahead of the upcoming Federal Open Market Committee (FOMC) meeting, with expectations that the Fed will maintain its hawkish stance.

Further selling pressure emerged as risk appetite remained fragile, driving flows into the greenback. Traders will closely monitor any FOMC commentary for clues on the rate outlook.