Gold prices were largely steady on Wednesday as investors assessed the possibility that major central banks could keep interest rates elevated for longer in an effort to contain persistent inflation.
Spot gold was little changed at $4,356.92 an ounce by 00:40 GMT, while US gold futures for December delivery rose 0.4% to $4,394.90 an ounce.
Boston Federal Reserve President Susan Collins wrote that she supported the US central bank’s decision last week to raise interest rates, citing the risk that inflation could exceed the 2% target in the future.
The Federal Reserve raised its benchmark interest rate by 25 basis points last week to a range of 3.75% to 4%, while signaling the possibility of another increase before the end of the year.
The Bank of Japan and the European Central Bank have also raised interest rates recently.
Although gold is generally viewed as a hedge against inflation, its appeal tends to diminish when interest rates rise.
US President Donald Trump warned that he could “annihilate” Iran if an agreement to end the war could not be reached, while also indicating that a deal could be reached soon amid diplomatic efforts at the United Nations.
Among other precious metals, spot silver rose 0.4% to $67.37 an ounce, platinum gained 0.3% to $1,837.80, while palladium rose 0.3% to $1,311.40.
