Gold steadies amid expectations of higher interest rates for longer

Gold prices stabilized on Wednesday as investors assessed the likelihood that major central banks would keep interest rates elevated for longer in an effort to curb persistent inflation.

Spot gold prices saw little change, trading at $4,356.92 per ounce by 00:40 GMT, while U.S. December gold futures rose 0.4 percent to $4,394.90.

Susan Collins, president of the Federal Reserve Bank of Boston, wrote that she supported the U.S. central bank’s decision last week to raise interest rates, citing risks that inflation could exceed its 2 percent target in the future.

Last week, the Federal Reserve (the U.S. central bank) raised its benchmark interest rate by 25 basis points to a range of 3.75 to 4 percent, and signaled the possibility of another increase before the end of the year.

U.S. President Donald Trump warned that he might destroy Iran if a deal to end the war cannot be reached, but also indicated that an agreement could be reached soon amid diplomatic moves at the United Nations.

Among other precious metals, spot silver rose 0.4 percent to $67.37 per ounce, platinum gained 0.3 percent to $1,837.80, and palladium increased 0.3 percent to $1,311.40.