Gold Prices Flat as Investors Await Fed Policy Signals

Gold prices held steady on Tuesday as investors awaited comments from US Federal Reserve officials for policy clues. The precious metal has struggled to gain momentum due to high interest rates, which make yield-bearing assets more attractive.

Spot gold was little changed at $4,342.41 per ounce by 0454 GMT. US gold futures fell 0.1% to $4,379.30. Chris Weston, head of research at Pepperstone, noted that bullion's appeal tends to wane in a high-interest-rate environment.

The Fed raised its policy rate by a quarter of a percentage point last week and flagged more hikes in the coming months. St. Louis Fed President Alberto Musalem said it would be better for the Fed to act sooner than wait, as the central bank needs to hike rates further to lower inflation resulting from strong demand and commodity price shocks.