Fed Rate Hike Signals Send Gold Prices Down

Gold prices slipped on Tuesday as Federal Reserve policymakers signaled more interest rate hikes to combat inflation. Spot gold fell 0.4% to $4,327.74 per ounce by 1050 GMT, while US gold futures declined 0.4% to $4,364.90.

Nemo.money market analyst Jamie Dutta said the precious metal remains stuck in a near-term range between $4,300 and $4,400 for gold. He attributed this to tighter monetary policy being a headwind for gold, which would likely hurt it if there's more than one Fed rate hike by year-end.

The Fed raised its policy rate by 25 basis points last week and Chairman Kevin Warsh flagged more hikes in the coming months. Traders now see a 90% chance of a rate hike in December, up from 80% last week, according to the CME FedWatch Tool.