Gold Prices Steady as Fed Tightening Bets Offset Oil Decline

Gold prices were steady on Thursday, caught between expectations of further Federal Reserve policy tightening and a decline in oil prices. Spot gold remained unchanged at $4,291.48 per ounce by 0512 GMT, while US gold futures for December delivery rose 0.2% to $4,326.30.

Market expectations of another rate hike on the eve of critical national elections are pushing the Fed towards a higher-for-longer stance, according to Ross Maxwell, chief strategy officer at VT Markets. He noted that investors are focused on the Fed's policy tightening, fluctuations in the US dollar and Treasury yields, and Middle East developments related to oil and energy supply risks.

Oil prices edged lower as Iran remained open to diplomacy to end the US-Iran war, though the two countries remain far apart on ways to do so. Gold's appeal is diminished by rising interest rates, making it less attractive relative to interest-bearing investments.