Gold Prices Stagnate Amid Prolonged High Interest Rates

Gold prices remained flat on Wednesday as investors weighed the impact of central banks keeping interest rates high for longer to combat inflation.

The spot price of 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 said she supported the recent interest rate hike by the US central bank, citing risks to future inflation being above the 2% target.

The Fed last week raised its benchmark rate by 25 basis points to 3.75%-4.00%, and signaled another increase could come before year-end. The Bank of Japan and the European Central Bank have also recently hiked rates.