Gold climbs ahead of Fed decision amid Middle East tensions
Gold prices rose slightly as investors awaited the Federal Reserve's decision and monitored tensions in the Middle East. The spot price increased by 0.4% to $4,063.78 per ounce, heading towards weekly gains of over 1%. This comes amid escalating military tensions between the United States and Iran, with U.S. airstrikes continuing against Iranian targets, and Iran firmly rejecting ceasefire proposals unless control over the Strait of Hormuz is settled. Fears of soaring oil prices have intensified, with prices nearing $100 per barrel, fueling expectations of rising inflation and affecting interest rates. The market currently prices in a 29% chance of a rate hike at the Federal Reserve's meeting next week, while the dollar maintains its strength as a safe haven.
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