Gold prices remained subdued on September 24 as expectations of further US Federal Reserve rate hikes strengthened, while softer oil prices provided limited support to bullion.
Spot gold was down 0.1% at dollar 4,281.98 per ounce as of 0155 GMT, while US gold futures for December delivery were little changed at dollar 4,317.50.
The pressure on gold followed the Federal Reserve’s 25-basis-point rate increase last week, which took its benchmark interest rate to 3.75%-4%. Market participants are now assessing the possibility of another hike later this year amid persistent inflation and stronger economic activity.
Higher interest rates can reduce the appeal of gold relative to interest-bearing assets, while a stronger US dollar can make dollar-denominated bullion more expensive for buyers holding other currencies.
Oil prices edged lower on Thursday after Iran indicated that it remained open to diplomacy to end the US-Iran conflict. The movement in energy prices is also being watched because higher oil prices can add to inflationary pressures and influence expectations for central-bank policy.
Among other precious metals, spot silver fell 0.6% to dollar 64.07 per ounce, while platinum rose 0.2% to dollar 1,754.05 and palladium declined 0.1% to dollar 1,260.70.
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