Gold Stabilizes Near $4,370 Amid Fed Rate Hike and Inflation Concerns

The price of gold steadied near $4,370 an ounce after the Federal Reserve's first rate hike in more than three years. The Fed increased its benchmark interest rate by 25 basis points at its September 15-16 meeting to combat inflation that has remained above the central bank's 2% target for over five years.

Markets are paying close attention to comments from Fed officials, particularly Minneapolis Fed President Neel Kashkari, who said US inflation remains too high and has spread beyond the oil shock tied to the Iran war. Chicago Fed President Austan Goolsbee and New York Fed President John Williams are also scheduled to speak publicly this week.

Developments in the Middle East and international oil prices are key variables for gold prices, with energy prices remaining elevated due to supply concerns. If high energy prices persist, inflation pressures could continue, raising the likelihood of higher rates for longer, which would weigh on gold.