Gold Prices Steady Ahead of Expected Rate Hike

The price of gold is holding steady at around $4,328 ahead of the US Federal Reserve's monetary policy decision and interest rate hike announcement on Wednesday.

The Fed is widely expected to raise benchmark interest rates by 25 basis points (bps) to 3.75%-4%, with a roughly 92% probability of such a move according to the CME FedWatch tool.

While strategists at ING note that much of the hawkish Fed risk appears to be priced in, they caution that gold could remain vulnerable if policymakers signal rates will stay higher for longer.