Gold Prices Hold Steady Amid Fed Interest-Rate Uncertainty

Gold prices held steady on Tuesday as investors continued to grapple with uncertainty over the Federal Reserve's interest-rate path. The US central bank has kept rates unchanged at its last policy meeting, but markets are pricing in a 63% chance of a rate hike in September.

According to ActivTrades senior analyst Ricardo Evangelista, gold prices have been stuck in a narrow range between $4,000 and $4,100 over the past few weeks. The uncertainty surrounding the Fed's interest-rate path has led investors to remain cautious, with little change in the picture over the past 24 hours.

The outlook for gold remains positive, supported by rising global debt levels, persistently elevated inflation, continued central bank purchases, and constrained mine supply growth, Evangelista said. However, bullion tends to lose appeal when interest rates rise, highlighting the risk of tighter monetary policy by the US Fed.