Gold Prices Steady After Sharp Selloff as Rate Hike Bets Rise

Gold prices have stabilized after a sharp selloff of over 3% in the previous session, following Federal Reserve Chair Kevin Warsh's hawkish inflation message.

The Fed's outlook has revived rate hike bets, with investors now pricing roughly a 57% probability of a September hike according to CME's Fedwatch tool.

This shift is weighing on bullion as gold does not pay interest, making interest-bearing assets such as government bonds more attractive when rates are expected to remain higher.