Gold Prices Edge Lower Amid Interest Rate Hopes

Gold prices remained steady on Wednesday but are still headed for a monthly loss due to expectations of higher interest rates, which weigh heavily on the market. Spot gold held little change at $4,178.59 per ounce as of 0037 GMT and is down nearly 6% so far this month.

US gold futures gained 0.7% to $4,210.30. The Federal Reserve's policy path remains a key concern for investors, with the release of US inflation data on Wednesday at 1230 GMT providing crucial clues. According to the CME's FedWatch Tool, traders see a 50% chance of a Fed rate increase in October and a 92% chance of a hike in December.

Federal Reserve Bank of New York President John Williams said that the US central bank has time to weigh economic data before deciding when to hike interest rates again, adding one more increase is likely before the year ends. In a high-interest rate environment, investors often favor yield-bearing assets over gold.