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Gold Prices Steady, Poised for Monthly Loss Amid US Rate Hike Fears

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At a glance

  • Spot gold steadied at $4,180.30 per ounce on Wednesday.
  • Prices are on track for a 6% monthly decline, pressured by rate hike expectations.
  • Investors await key US inflation data for clues on the Federal Reserve's next move.

Story so far

Gold prices have been under pressure, heading towards a monthly decline as the US dollar strengthens and expectations of higher interest rates from the Federal Reserve grow. The Fed has already raised rates by 25 basis points this month, and traders anticipate further hikes before the end of the year. The market is now closely watching key US economic indicators for future direction.

Latest development

Gold prices held steady on Wednesday but remained on course for a monthly loss of around 6%. The market is focused on upcoming US inflation data, which could influence the Federal Reserve's decision on further interest rate hikes.

Responses

  1. The link between US monetary policy and local gold prices is always a concern. For ordinary families who rely on gold as their primary form of savings, does this volatility make it a less reliable safety net?

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