Gold Prices Tread Water Amid Rate Hike Expectations

Gold prices remained steady at $4,180.30 per troy ounce on Wednesday's trading session, despite expectations of higher interest rates weighing them down.

The market sentiment was under pressure from anticipated rate hikes, with investors waiting for US inflation data to gauge the Federal Reserve's next monetary policy moves.

Critical Metals CEO Tony Sage said that the release of the US Personal Consumption Expenditures (PCE) price index would be an important test for gold prices, as it could affect expectations for US monetary policy and Treasury yields.

Higher interest rates generally reduce the appeal of gold because the precious metal does not offer returns like interest-bearing assets, according to Sage.