Higher-For-Longer Rate Outlook Weighs on Gold Sentiment

Gold prices dipped on Wednesday as investors weighed the prospect of major central banks maintaining elevated interest rates to combat inflation.

The US Federal Reserve, Bank of Japan, and European Central Bank have all raised rates recently, signaling a 'higher-for-longer' rate outlook that's weighing on gold sentiment.

Spot gold fell 0.2% to $4,345.99 per ounce, while US gold futures for December delivery were up 0.2% at $4,382.70.

Kyle Rodda, senior financial market analyst at Capital.com, noted that 'short-term volatility in gold very much depends on how oil trades and the developments that happen in the Middle East.'