Gold steadies on prolonged high interest rate outlook
Gold prices remained steady at around $4,357 per ounce, amid expectations that major central banks will continue to raise interest rates in an effort to curb persistent inflation. The U.S. Federal Reserve increased interest rates to a range between 3.75% and 4%, with the possibility of another hike before the end of the year. Similarly, other banks such as the Bank of Japan and the European Central Bank have also raised their interest rates. Although gold is considered a hedge against inflation, its appeal diminishes as interest rates rise, affecting its value. Projections suggest that continued interest rate hikes may keep gold prices stable or low in the short term.
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