Gold prices remained below the $4,000 mark as traders anticipated a potential interest-rate hike by the Federal Reserve next month. The precious metal traded near $3,970 an ounce after a more than 1% decline in the previous session. Persistent inflation and hawkish comments from Fed officials have strengthened expectations of a rate increase.
Markets are fully pricing in a quarter-point rate hike in December, with some traders even considering the possibility of a half-point increase. The uncertainty surrounding the Fed's decision has kept gold under pressure, as higher interest rates typically reduce the appeal of non-yielding assets like bullion.