Gold steadies as traders weigh inflation and Fed hike outlook
Bullion is trading around US$4,375 an ounce, after posting a moderate gain the week before
Gold prices steadied at around US$4,375 per ounce as traders evaluated the risks posed by persistent inflation and the Federal Reserve's potential interest rate hikes. The US Federal Reserve had voted unanimously to increase rates by a quarter point at its Sep 15-16 meeting, aiming to curb inflation that has remained above the 2% target for over five years.
Key Fed policymakers, including Minneapolis Fed president Neel Kashkari, Austan Goolsbee, and New York Fed president John Williams, were scheduled to provide insights into the path of future adjustments. While oil prices remained stable, gold benefitted from higher energy costs, which could prolong the period of elevated interest rates, negatively impacting non-yielding assets like bullion.
Spot gold experienced a minor decline of 0.1% to US$4,373.95 per ounce, while silver gained 0.2% to US$66.38 an ounce. Platinum and palladium also saw slight increases. The Bloomberg Dollar Spot Index maintained its level, having risen by 1% the previous week.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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