Gold Prices Struggle at Seven-Week Lows Amid US Data and Rate Hike Concerns

Gold prices have been hovering near their lowest level in over seven weeks, remaining largely unchanged on Tuesday. Investors are awaiting US economic data releases, which could influence the market's direction.

The current price of spot gold is $4,124.57 an ounce, with US gold futures falling 0.3% to $4,156.70 an ounce. This comes amid concerns that the US Federal Reserve may keep interest rates elevated for longer.

Christopher Taher, a market analyst at Exness, notes that geopolitical developments will remain crucial for gold prices. 'Prolonged tensions could keep energy prices and yields elevated, while tangible progress toward de-escalation could ease the pressure,' he said.

The Federal Reserve's potential interest rate hike in October has been factored into market expectations, with a 70.3% probability indicated by CME's FedWatch tool. This, combined with strong economic activity and persistent price pressures, may strengthen expectations of restrictive monetary policies, leaving gold vulnerable to further losses.