Gold muted as higher-for-longer rate outlook weighs

Business Recorder reported that gold prices lacked momentum on Tuesday, with spot gold roughly unchanged at $4,344.29 per ounce as of 0151 GMT. Traders were weighing expectations that interest rates would stay elevated for an extended period while waiting for remarks from US Federal Reserve officials. US gold futures held steady at $4,381.80.

Last week the Fed pushed its main rate up by a quarter point and signalled further increases in the months ahead. St. Louis Fed President Alberto Musalem argued that more hikes will probably be needed to curb inflation driven by robust demand and broader commodity costs beyond oil, adding that moving early would be better than delaying.

Chris Weston of Pepperstone noted that crude has eased modestly from its recent peaks, but a renewed rise that lifts inflation expectations would deepen the rate concerns and keep pressure on gold. Silver added 0.3% to $66.19, platinum edged up 0.3% to $1,792.76 and palladium rose 0.3% to $1,305.10. Oil gained after a run of losses this week, while traders watched for possible US-Iran talks at the UN General Assembly.