Spot gold prices declined on Tuesday, at one point dropping more than 4%, as some investors opted for the U.S. dollar over bullion as their preferred safe-haven asset.

The dollar climbed 0.9%, reaching its highest level in more than a month, while U.S. Treasury yields moved sharply higher.

A stronger greenback typically makes dollar-denominated gold more expensive for holders of other currencies, and rising yields increase the opportunity cost of owning the non-yielding metal.

According to CME Group data, traders expect the Federal Reserve to leave interest rates unchanged at the conclusion of its upcoming two-day meeting on March 18. The probability of rates remaining on hold in June, previously below 45%, has risen to above 60%.