Gold Prices Steady Near $4,295 as Yields Hit 2007 Highs Ahead of Federal Reserve Decision

Gold prices steadied near $4,295 on Tuesday after hitting a more-than-one-month low of $4,253 on Monday.

The precious metal remains under pressure from firmer US Treasury yields and a stronger US Dollar, with the 10-year yield testing 5% and the 30-year climbing to around 5.40%, both levels not seen since 2007.

Higher energy prices due to the Middle East war have added to inflation concerns, which are expected to influence the Federal Reserve's decision on Wednesday.

The Fed is widely anticipated to raise interest rates for the first time since 2023, with markets expecting a prolonged tightening cycle that could further pressure gold prices.