Gold steady before Fed rate decision
Gold prices remained near $4,030 per ounce during Wednesday's trading, as investors await the Federal Reserve's decision on interest rates. The likelihood of holding rates steady is around 70%, with attention focused on the Fed chairman’s statements to gauge more about inflation and the potential for a rate hike in September. Gold futures declined slightly by 0.2% to $4,028.10 amid caution ahead of the announcement. Meanwhile, the dollar maintained its position near the highest level in a month, which puts pressure on gold gains due to increased costs. Geopolitical tensions, especially the interception of Iranian rockets in the Middle East, are boosting demand for gold as a safe haven. Additionally, current tensions are pushing oil prices higher and raising inflation concerns, potentially prompting banks to extend the period of elevated interest rates. Omani plans to manage the Strait of Hormuz point to possible de-escalation of tensions, while major banks expect interest rates to remain unchanged amid high inflation risks. Silver prices rose by 0.9% to $57.65, platinum increased by 0.3% to $1,600.40, and palladium declined by 0.7% to $1,261 per ounce.
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