Gold Prices Headed for Monthly Loss on Higher Interest Rates

Gold prices have steadied at $4,180.30 per ounce as of 0435 GMT on Wednesday but are headed for a monthly loss due to expectations of higher interest rates.

The metal's appeal is reduced by higher interest rates because it does not offer a yield, according to Tony Sage, CEO of Critical Metals.

Investors are awaiting the US personal consumption expenditures price index release at 1230 GMT for clues on the Federal Reserve's next policy move.

A softer reading in the PCE data could support gold and push it back into the $4,200-4,300 range, while a hotter number could push yields and the dollar higher, putting renewed pressure on gold and testing the $4,100 level.