Gold Struggles Amid Fed Tightening Expectations

Gold prices stagnated on Wednesday due to expectations of further Federal Reserve policy tightening. Despite a slight drop in oil prices, which provided some support, gold was unable to gain traction.

Spot gold fell by 0.1% to $4,281.98 per ounce as of 0155 GMT, while US gold futures for December delivery remained unchanged at $4,317.50.

Ross Maxwell, chief strategy officer at VT Markets, explained that investors are focused on the Fed's 'higher-for-longer' stance following last week's rate increase and fluctuations in the US dollar and Treasury yields.

A clearer signal of another rate hike would likely pressure gold lower, Maxwell added.