WASHINGTON (dpa-AFX) - Gold prices held steady on Monday as comments from two Fed officials last week gave the market confidence that the Fed is nearing the end of its rate hiking cycle.
Spot gold was little changed at $1,914.36 per ounce, while U.S. gold futures were up 0.1 percent at $1,941.45.
The dollar eased from a 12-week high as investors weighed U.S. Federal Reserve's hawkish stance on interest rates against the darkening economic outlook.
On Friday, Fed Chair Jerome Powell signaled that rates may rise further but the Fed will 'tread carefully.'
Comments from two Fed officials earlier on Thursday suggested that the Fed may be close to being done with interest-rate increases.
Incremental rate hikes may be required but we may be very near a place where we can hold for a substantial amount of time, Boston Fed president Susan Collins said on Thursday.
Separately, Philadelphia Fed president Patrick Harker indicated that the Fed should keep interest rates at the current level while it assesses the impact on the economy.
Futures imply around an 80 percent chance of a steady outcome at the Sept. 20 meeting, but a 58 percent probability of a hike by year end.
Elsewhere in Europe, ECB President Christine Lagarde on Friday emphasized that policy needed to be restrictive.
U.K. interest rates are expected to peak at 5.5 percent next month as Bank of England policymakers try to minimize the impact of higher borrowing costs on the housing market.
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