Gold prices steady as investors weigh potential US rate hike

Gold prices remained stable in Asian markets on Thursday as investors weighed the odds of another interest rate hike by the US Federal Reserve this year. The price of spot gold remained unchanged at $1,285.31 per ounce at the start of trading. US gold futures for December delivery also held steady at $1,321.40. This stability in gold prices comes as rising inflationary pressures and an economic rebound have strengthened expectations that the Federal Reserve may raise rates again before the important midterm elections.

According to the FedWatch tool, traders are increasingly predicting a second consecutive rate hike in late October. Despite gold traditionally being viewed as a hedge against high inflation, higher interest rates typically diminish its attraction since it does not generate income. Meanwhile, tensions between Iran and the United States persist, with both sides far apart on ending their conflict.

However, diplomatic efforts are still deemed necessary, as highlighted by an Iranian official who spoke to Reuters. The Iranian president stated at the UN General Assembly that Tehran would not yield to US pressure. In terms of other precious metals, silver prices fell 0.6 percent to $64.08 per ounce, platinum remained steady at $1,749.47, and palladium increased by 0.2 percent to $1,261.95.