Gold subdued by bets for more Fed rate hikes

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Gold last traded at $1,723 an ounce. Silver at $18.42 an ounce.

NEWS SUMMARY: Precious metal prices eased Tuesday amid falling oil prices and a flat dollar. U.S. stocks fell as the Federal Reserve signaled they will raise interest rates to squash inflation despite the negative consequences for economic growth.

CNBC--"Gold prices edged lower on Tuesday on expectations of more interest rate hikes by the U.S. Federal Reserve, while a softer dollar capped declines....

'Gold prices remain under the mercy of rising Treasury yields as markets come to terms with the Fed's vow to digest to tame soaring inflation,' said Lukman Otunuga, senior market analyst at FXTM....

At the Jackson Hole central banking conference in Wyoming last week, the Fed and the ECB struck a hawkish tone, pledging all efforts to tame high inflation even if economic growth takes a hit. The Fed has been raising borrowing costs since March, with a majority of traders now expecting a 75 basis points hike in September.

Any gain in gold may be muted as Fed chief 'Jerome Powell's comments highlighted that plenty of intervention is still required to bring inflation under control,' said Rupert Rowling, analyst at Kinesis Money.

Although gold is considered a safe bet during economic uncertainty, rate hikes increase the opportunity cost of holding bullion."