Washington: Gold prices continued to slide on Tuesday as a firm United States dollar and fading expectations of an early interest rate cut by the Federal Reserve put fresh pressure on the precious metal. This marked the fourth straight session of decline, as investors shifted toward safer currency holdings while waiting for clearer signals from the Fed.

Spot gold dropped close to one percent to around 4010 dollars an ounce, while US gold futures also slipped. The dollar index stayed strong, making gold more expensive for buyers using other currencies. Analysts say this strength has discouraged short term buying and added to the downward trend.

Market expectations for a December rate cut have weakened sharply in recent days. Just weeks ago, investors were almost certain that the Fed would begin easing policy. Now the chances have fallen to nearly half, following mixed economic data and cautious comments from Fed officials. A rate cut usually boosts gold because it lowers the opportunity cost of holding a non interest bearing asset, but the shift in outlook has kept pressure on prices.

In India, domestic gold futures also traded lower, following the global trend. The rupee held within a narrow range as the Reserve Bank of India continued to manage volatility amid steady demand for the dollar. India's October trade deficit recently reached a record level, partly driven by a sharp rise in gold imports.

Despite the current weakness, some analysts believe gold still has solid long term support due to global political tensions, high US debt levels and strong buying from central banks. They say any further drop in prices may attract long term investors, although short term movements will continue to depend on US economic data and dollar strength.

Traders are now watching upcoming inflation numbers and labour market data from the United States, which are expected to influence the Fed's final policy decision of the year.