Gold Prices Remain Steady Amid Prolonged High Interest Rates

Gold prices remained subdued on Wednesday as investors weighed the prospect of prolonged high interest rates in their efforts to curb inflation. Spot gold was little changed at $4,356.92 per ounce, while US gold futures for December delivery were up 0.4% at $4,394.90.

Boston Federal Reserve President Susan Collins supported the recent decision by the US central bank to raise interest rates in the face of risks that future inflation will be above the 2% target. The Fed last week lifted its benchmark rate by 25 basis points to 3.75%-4.00% and signalled another increase could come before year-end.

The Bank of Japan and the European Central Bank have also raised rates recently, with oil prices becoming an increasingly important indicator for ECB policymakers in setting interest rates.