Gold Prices Stabilize as Market Awaits Fed Rate Hike Decision

Gold prices have stabilized after a two-day decline of more than 3.5%, but traders are now betting on tighter monetary policy from the Federal Reserve.

The US central bank is expected to raise interest rates, with a probability of over 60% at its upcoming meeting on September 15-16, according to market expectations.

This comes as oil prices continue to rise following recent tensions between the United States and Iran, which have heightened concerns about further increases in energy costs and inflation.

Gold typically performs poorly when interest rates are raised, as it generates no interest income. However, gold did experience a 10% gain in August, its largest monthly increase since January.