Gold resumes growth with the Fed's sentiment limiting it

Gold prices rose on Tuesday, ranging between a two-week low. This is due to the Fed’s hawkish stance that pushed the dollar higher. 

Earlier, there has been a fall in the metals market caused by a global recession risk. Thus, further increase of interest rates may bring inflation down. However, these measures are expected to offer better prices for metals, as reported by Investing.com.

Mary Daly, president of the San Francisco Fed, said that the regulator needs to make more efforts in order to curb inflation. 

Central bank would be less aggressive on rate hikes in December, noted Loretta Mester, Chief Executive Officer of the Federal Reserve Bank (FRB) in Cleveland. The rate could be increased by 50 basis points.

U.S. economic indicators, including inflation data, are likely to be key in determining the size of prospective rate hikes. A significant rate rise would have a negative impact on gold prices and the metals market as a whole. 

Minutes of the last Fed meeting are set to be published on Thursday, November 24. Investors anticipate a slower pace of monetary tightening in the U.S.