Gold Prices Stable as Global Equity Markets Hit by Selloff

Gold prices were on steady footing on Tuesday, lifted by a slump in global stock markets but pressured by bets for additional rate hikes by the U.S. Federal Reserve this year.

Spot gold was mostly unchanged at $1,338.62 an ounce, after ending up 0.5 percent on Monday. The precious metal on Friday edged up 0.5 percent on Monday.

Gold fell 1.2 percent on Friday in its biggest one-day drop since December 7. In the previous week, the metal saw its biggest weekly decline since the week ending December 8. U.S. gold futures edged up 0.4 percent at $1,342 per ounce.

Last week, the U.S. Federal REserve stood pat on interest rates, but lifted its inflation outlook and signaled more gradual interest rate increases.

Stock markets retreated around the world as a rebound in U.S. inflation raised the possibility that the FEd would tighten monetary policy at a more aggressive pace than priorly expected.

However, U.S. bond yields surged on Monday as traders eased expectations the Fed would accelerate its clip of interest rate increases in the aftermath of a dramatic sell-off in the U.S. stock market, with the Dow losing more than 1, 000 points.

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