Commodities
Gold Prices Steady Amid Expectations of Further Rate Hikes
Gold prices remained largely unchanged on Tuesday as investors weighed expectations of future interest rate hikes by the Federal Reserve.
The US central bank raised its benchmark interest rate last week and signaled further increases may follow in the coming months, with St. Louis Federal Reserve President Alberto Musalem stating that more rate hikes are needed to combat inflation driven by strong demand and commodity price shocks.
Gold's appeal as a hedge against inflation and geopolitical risks tends to diminish in a high-interest-rate environment, where investors prefer yield-bearing assets over gold.