Gold sinks to 4-month low as dollar gains

Gold futures plunged to a four-month low Tuesday after a stronger dollar and a drop in crude prices fed selling of the metal traditionally viewed as a hedge against inflation.

Other commodities fell in a broad sell-off, with silver, copper, heating oil and agriculture futures all trading lower.

The dollar strengthened against several major currencies as investors bet that the Federal Reserve may be poised to wind up its interest-rate cutting campaign and turn its attention to curbing inflation. The Fed, which begins a two-day policy meeting Tuesday afternoon, is expected to cut its benchmark rate by a quarter point on Wednesday but then hold steady for the rest of the year.

Lower rates can boost the economy but tend to undercut the dollar, encouraging investors to buy hard assets like gold, which is known for holdings its value.