Gold Stalls Amid Inflation Fears and Fed Rate Hikes

Gold prices remained steady as traders weighed the risks of persistent inflation and the Federal Reserve's path for interest rates. The US dollar was stable after rising 1% the previous week.

The Fed raised interest rates by a quarter percentage point at their September 15-16 meeting, aiming to cool inflation that has not fallen below 2% in over five years. Minneapolis Fed President Neel Kashkari said inflation remains too high and pressures have broadened beyond oil prices, affecting all aspects of the economy.

Several Fed policymakers are set to speak publicly this week, including Chicago Fed President Austan Goolsbee on September 21 and New York Fed President John Williams on September 22. Oil prices steadied as traders tracked supply risks in the Middle East, with President Donald Trump indicating a potential meeting with Iranian counterpart Masoud Pezeshkian.

Higher energy prices reinforce bets on interest rates staying elevated for longer, which is negative for non-yielding bullion like gold. Analyst Justin Lin from Global X ETFs said gold will likely trade closely off movements in oil prices and the broader inflation outlook.