Gold Prices Slip Amid Expectations of Higher US Interest Rates

Gold prices have been holding steady but remain on track for a monthly decline due to expectations of higher US interest rates. The precious metal is currently priced at $4,178.59 per ounce and has fallen nearly 6% in value over the past month.

The Federal Reserve's next policy moves are being closely watched by investors, who are awaiting key US inflation data for clues on their trajectory. The personal consumption expenditures (PCE) price index is scheduled to be released at 1230 GMT on Wednesday, followed by the non-farm payrolls report on Friday.

New York Fed President John Williams has indicated that another interest rate increase could come before the end of the year, with a 92% probability of a hike in December. The CME FedWatch Tool cited by Reuters shows traders pricing in a 50% probability of a Fed rate increase in October and a 92% probability in December.

The pressure on gold is compounded by weakening US consumer sentiment, which fell to a near 12-and-a-half-year low in September amid concerns over economic stability and rising interest rates. A stronger dollar can make gold more expensive for holders of other currencies, while higher yields increase the relative appeal of interest-bearing assets.