Gold Prices Rise Slightly Despite Fed's Hawkish Stance

Gold and silver prices rose slightly in early Asian trade on September 22, despite expectations of higher US interest rates for longer continuing to limit gains. The Federal Reserve raised its policy rate by 25 basis points last week and signaled that further increases could be needed to bring inflation under control.

St. Louis Fed President Alberto Musalem said the US central bank may need to raise rates further as strong demand and a broader commodity price shock continue to add to inflationary pressures.

COMEX gold rose 0.17% to $4,391.30 per ounce on September 22, while COMEX silver gained 0.58% to $66.80 an ounce. Spot gold was little changed at $4,344.29 an ounce, and US gold futures were steady at $4,381.80 an ounce.

Investors are also tracking crude oil prices and developments around potential US-Iran talks at the United Nations General Assembly this week.