Gold Prices Steady Amid Dollar Strength and Fed Rate Hike Uncertainty

Gold prices remained stable in global markets on Tuesday, as gains in the U.S. dollar countered support from reduced expectations of a Federal Reserve interest-rate hike this month.

Spot gold saw minimal change, trading at $4,141.81 per ounce, while U.S. gold futures for December delivery rose 0.3% to $4,169.10 per ounce, according to Reuters.

The dollar’s strength made gold more expensive for investors using other currencies, as the euro hit a 17-month low against the dollar on Monday due to concerns over eurozone debt and rising bond yields.

Higher U.S. Treasury yields also pressured gold prices by increasing the opportunity cost of holding non-interest-bearing assets. The yields on 10-year and 30-year U.S. Treasury bonds reached their highest levels in 24 years on Monday.

Meanwhile, softer U.S. jobs data lowered expectations of a Fed rate hike this month, offering some support to gold. Investors are now focusing on upcoming U.S. economic reports for further guidance on monetary policy.