Gold prices struggled for momentum on Tuesday as expectations of higher US interest rates limited gains. Spot gold was little changed at $4,344.29 per ounce, while US gold futures stood at $4,381.80.

Investors are closely watching comments from Federal Reserve officials for clues about the central bank’s next move, particularly whether another rate increase could come in October.

The Federal Reserve raised its policy rate by 0.25 percentage points last week and indicated that further increases could be needed to control inflation. Higher interest rates can reduce gold’s appeal because the metal does not provide regular interest or dividend income.

Oil and inflation remain key market signals

Chris Weston, head of research at Pepperstone, said a renewed rise in crude oil prices could increase inflation expectations and keep pressure on gold.

St. Louis Fed President Alberto Musalem has also said further rate increases may be necessary as strong demand and wider commodity price pressures continue to affect inflation.

Meanwhile, geopolitical developments in the Middle East are also keeping investors alert. Markets are watching developments in Yemen and possible US-Iran talks during the United Nations General Assembly.

Other precious metals also moved higher. Silver rose 0.3% to $66.19 an ounce, platinum gained 0.3% to $1,792.76, while palladium increased 0.3% to $1,305.10.