Gold Struggles Near Seven-Week Lows on Higher Interest Rate Fears
Gold prices held steady on Tuesday but remained at their lowest level in over seven weeks due to concerns that the Federal Reserve may keep interest rates higher for longer.
The precious metal's price hovered around $4,124.57 per ounce, with U.S. gold futures falling 0.3% to $4,156.70.
Geopolitical tensions continue to impact gold prices, with continued conflict in the Middle East leading to higher energy costs and yields.
Christopher Tahir, senior market strategist at Exness, noted that 'geopolitical developments will remain crucial for gold' as they influence energy prices and yields.
The Federal Reserve's potential decision to keep interest rates high has led investors to favor assets that generate returns over gold, which tends to struggle in a high-rate environment.