Gold prices remained flat on Monday as the US dollar held firm and investors assessed the likelihood of interest rates increase following the Federal Reserve's hawkish tone.
The dollar's strength made bullion less attractive to buyers holding other currencies. The Fed said that despite the rate remaining steady, inflation in key US industries remained high and had not shown indications of decline.
Gold is considered a hedge against inflation, and while interest rate hikes reduce the cost of holding non-yielding bullion, it also raises its opportunity cost.
Source Reuters
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