Commodities
Gold Struggles Amid Higher Interest Rate Expectations
Gold prices remained stagnant on Tuesday as investors anticipated higher interest rates for an extended period, which diminished the metal's appeal.
The spot gold price was little changed at $4,344.29 per ounce, while US gold futures held steady at $4,381.80.
Bullion is traditionally used as a hedge against inflation and geopolitical risks, but its value tends to decrease in high-interest-rate environments when investors opt for yield-bearing assets instead.
Chris Weston, head of research at Pepperstone, said that crude oil prices could intensify the rates story if they rebound higher, further pressuring gold prices.