Gold Prices Hold Near Seven-Week Low Amid Fed Rate Hike Fears

Gold prices continued to hover near a seven-week low on Tuesday, despite rising 1% in value. The precious metal's price has been impacted by concerns that the Federal Reserve may maintain higher interest rates for longer, as well as inflationary pressures and a stronger dollar.

The session low for gold on Tuesday was $4,112.97, just over $2 above the more than seven-month-low of $4,110.55 hit on Monday. Peter Grant, vice president and senior metals strategist at Zaner Metals, attributed the move to 'just a correction from yesterday's losses,' but noted that there are still 'fairly significant headwinds for gold out there.'

The dollar rose to several-month highs, driven by volatile oil prices and Treasury yields. A stronger dollar makes greenback-priced bullion more expensive for overseas buyers, while higher Treasury yields increase the opportunity cost of non-yielding gold.