Gold remains steady ahead of US rate decision
Gold prices stabilized after hitting their lowest level in over a month, as investors awaited the Federal Reserve's decision on interest rates. It is expected that the Fed will raise interest rates by a quarter of a percentage point to a range of 3.75% to 4.00%, which could impact gold's attractiveness as a safe haven asset. The effect on gold largely depends on the Fed's statements regarding the pace of monetary tightening, as an interest rate hike increases the opportunity cost of holding the unprofitable metal. Meanwhile, the spot gold price stood at $4,300.96 per ounce, while oil prices rose and the yields on 10-year U.S. Treasury bonds fell to 5%, reflecting concerns over potential disruptions to Middle Eastern supply and rising inflation pressures.
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