Gold Prices Steady as Fed Rate Hike Bets Surge
Gold prices remained stable in early Asian trading on Thursday, as investors assessed the likelihood of the Federal Reserve raising interest rates again this year.
A Reuters report showed that spot gold held at $4,285.31 per ounce as of 00:22 GMT, with US gold futures for December delivery also remaining steady at $4,321.40.
The US Treasury bond prices fell on Wednesday, causing yields to surge sharply following a stronger-than-expected purchasing managers' index (PMI) report.
Rising inflationary pressures and economic recovery appear to be bolstering the case for another Federal Reserve rate hike ahead of the crucial midterm elections.
According to the FedWatch tool, traders are increasingly betting on a second consecutive monetary policy tightening in late October.