Gold Prices Steady at $4,355 Amid Fed Hawkish Policy
Gold prices held steady at around $4,355 due to the Federal Reserve's hawkish policy and rising short-term interest rates. The near-term outlook for gold is neutral, with immediate support at $4,340 and resistance at $4,381.
The recent Fed rate hike of 0.25% last week has increased expectations for another rate hike in October, which is putting pressure on gold prices. However, the easing of oil prices and improved supply from the Gulf have taken down inflation concerns and are benefiting bullion.
Geopolitical risks continue to provide support for gold, despite the current market challenges. China's ongoing gold purchases contribute to a longer-term bullish outlook for gold, with the People's Bank of China extending its 14th consecutive month of gold purchases in August.