Gold Prices Flat as Fed Rate Hike Expectations Offset Crude Oil Support

The price of gold remained flat at $4,281 as market pressure from expectations of further monetary policy tightening by the US Federal Reserve offset support from lower crude oil benchmark prices.

Spot gold slipped 0.1% to $4,281.98 per ounce, while December gold futures held near $4,317.50. The recent Fed rate hike to a range of 3.75%-4.00% has traders pricing in a potential second consecutive rate hike in late October.

Market analysts note that while rising interest rates elevate the opportunity cost of holding non-yielding bullion, heightened global economic volatility is keeping gold anchored near the $4,200 range.