Gold Prices Under Pressure from Higher Interest Rates Expectations
Gold prices held steady on Wednesday but remained on track for their first monthly decline in nearly a year. The precious metal's value has been weighed down by expectations of higher interest rates, which have investors favoring yield-bearing assets over gold.
The US personal consumption expenditures (PCE) price index is due later today at 1230 GMT, and the nonfarm payrolls report will be released on Friday. Federal Reserve Bank of New York President John Williams said that the central bank has time to weigh economic data before deciding when to hike interest rates again.
According to the CME's FedWatch Tool, traders see a 50% chance of a Fed rate increase in October and a 92% chance of a hike in December. Spot gold was little changed at $4,178.59 per ounce, down nearly 6% so far this month.