Gold Prices Hold Steady as Investors Weigh Rate Hike Odds

Singapore saw gold prices hold steady in early Asian trading on Thursday as investors assessed the likelihood of another Federal Reserve rate hike this year.

Spot gold remained unchanged, holding at $4,285.31 per ounce as of 00:22 GMT. US gold futures for December delivery also stayed steady at $4,321.40.

The recent surge in US Treasury bond prices and yields may have sparked concerns about a potential rate hike ahead of the midterm elections. According to the FedWatch tool, traders are increasingly betting on a second consecutive monetary policy tightening in late October.

Rising interest rates can diminish gold's appeal as it does not generate a yield, making it less attractive for investors seeking returns.