Gold Prices Steady Ahead of Fed Rate Decision Amid Rising Inflation

Gold prices held steady at $4,300.96 per troy ounce in spot trading on Tuesday, following Monday's intraday low since August 7.

The figure matched the previous session's close as investors awaited the U.S. Federal Reserve's interest rate decision amid rising U.S. inflation data and 10-year Treasury yields crossing 5%.

U.S. gold futures declined 0.3% to $4,341.10 per ounce, while other precious metals showed mixed results: spot silver rose 0.1%, spot platinum fell 0.1%, and spot palladium dropped 0.7%.

Tony Sycamore, a market analyst at IG, warned that how Federal Reserve Chair Jerome Powell frames the rate hike will matter more for gold than the hike itself: 'If he presents it as the start of a new tightening cycle, it would be a blow to gold and risk assets broadly.'

However, if Powell signals a preference for a more moderate pace, that could provide modest support to risk sentiment, and to gold.