Gold Prices Steady as Investors Bet on Prolonged High Interest Rates

Gold prices have stabilized as investors assess the likelihood of prolonged high interest rates. The Federal Reserve raised its benchmark interest rate by 25 basis points to a range between 3.75 and four percent, signaling another potential increase before the end of the year.

The Bank of Japan and the European Central Bank have also raised interest rates recently. Although gold is traditionally seen as a hedge against inflation, its appeal tends to wane when interest rates rise.

Spot gold held firm at $4,356.92 per ounce, while US gold futures for December delivery rose 0.4 percent to $4,394.90.