Gold steadies amid easing US rate hike anticipations
Gold prices settled around $4,135 per ounce after a decline of 0.6%, amid concerns of inflation driven by rising oil prices that approached their highest levels in five months. This uncertainty about the Federal Reserve's interest rate hike path adds to the market's hesitation. The Fed chair indicated support for keeping interest rates unchanged, which reduced the odds of a quarter-point rate increase to less than 20%. Meanwhile, the market still anticipates a further rate hike before year's end, with expectations reaching up to 90%. Despite the strength of the dollar and rising bond yields, gold remained above $4,100, though it declined in August after experiencing a significant drop in the previous month, with ongoing pressure from high borrowing costs.
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