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Gold prices stabilized on Wednesday as investors assessed the possibility that major central banks will keep interest rates high for a longer period in an effort to curb ongoing inflation.
The spot price of gold remained largely unchanged at $4356.92 per ounce (troy ounce) by 00:40 GMT, while U.S. gold futures for December delivery rose 0.4% to $4394.90.
Susan Collins, President of the Federal Reserve Bank of Boston, expressed support for the U.S. central bank's decision last week to raise interest rates, given the risk that inflation could exceed the target rate of 2% in the future.
Last week, the Federal Reserve raised the benchmark interest rate by 25 basis points to a range of 3.75% to 4%, and indicated that another increase could be approved before the end of the year.
The Bank of Japan and the European Central Bank have also recently raised interest rates.
Although gold is typically seen as a hedge against inflation, its appeal tends to diminish when interest rates are raised.
U.S. President Donald Trump warned that he might destroy Iran if an agreement to end the war could not be reached, but also indicated that an agreement might be reached soon amid diplomatic moves at the United Nations.
As for other precious metals, silver in spot transactions rose 0.4% to $67.37 per ounce, platinum increased 0.3% to $1837.80, and palladium rose 0.3% to $1311.40.
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