Gold Stalls at $4,400 as Fed Rate Hike Expectations Weigh

The price of gold steadied near $4,380 an ounce on Monday as falling oil prices and lower long-term Treasury yields offset pressure from expectations that the Federal Reserve will raise interest rates again before year-end.

The US 10-year Treasury yield eased towards 4.97%, while Brent crude fell towards $101 a barrel, reducing the risk of another energy shock feeding through to headline inflation and forcing the Fed into an even more aggressive tightening cycle.

Konstantinos Chrysikos of Kudo.com told The Wall Street Journal that gold could remain constrained while investors expect further tightening, as firmer central-bank guidance could push yields higher again.