US Economic Slowdown Eases Rate Hike Fears, Gold Prices Remain Steady

Gold prices held steady near $4,376 an ounce on August 16 as concerns over higher interest rates in the US were tempered by a slowdown in economic growth. The metal rose about 1% last week.

The recent US economic data has weakened, reducing worries that the Federal Reserve could raise rates sooner. Lower consumer sentiment and declining retail sales typically reduce gold's appeal since it does not pay interest.

However, uncertainty over Middle East energy prices continues to make it difficult to rule out further rate increases entirely. Additional attacks targeting ships in the Strait of Hormuz were reported late last week, and the US is preparing new sanctions to pressure Iran's economy.