Gold Stabilizes Near $4,400 as Traders Weigh Rate Hike Path
Gold prices stabilized near $4,400 an ounce as traders weighed the path forward for Federal Reserve interest rate hikes. The precious metal added 1% in the previous session to snap a three-day losing streak and has traded within a narrow range of around $4,400 in recent weeks.
Investors are awaiting US inflation data due later this week for clues on whether the Fed will hike rates. Yields on 10-year Treasuries rose, which is negative for gold as it doesn't pay interest. The move came after a government plan to buy up to $6 billion of longer-rated debt failed to sway the market.
Despite concerns around inflation and escalating tensions in the Middle East, Standard Chartered Plc analysts expect the Fed to remain on hold this year. They believe gold prices will recover in the coming months as the focus shifts to potential de-dollarisation, the theme of debasement, and risks of bond market intervention.