Gold Prices Hold Steady Amid Inflation Concerns and Interest Rate Hikes
Gold prices were steady on Monday as traders weighed the risk of persistent inflation and the path for interest rates after the US Federal Reserve's first hike since 2023.
The Fed raised interest rates by a quarter percentage point at their September 15-16 meeting, aimed at cooling inflation that has not fallen below the 2% target in over five years.
Minneapolis Fed President Neel Kashkari said on September 20 that inflation remains too high and pressures have broadened beyond the oil-price shock of the Iran war, citing 'all aspects of the economy'.
Oil prices were steady as traders tracked supply risks in the Middle East ahead of a week marked by intensified diplomacy over the US-Iran war, with President Donald Trump suggesting he may be open to a meeting with his Iranian counterpart.