Gold Holds at $4,000; Fed Decision Key
Gold prices showed volatility but remained above $4,000 per troy ounce during Wednesday's trading (July 29). Investors held their positions ahead of the Federal Reserve's interest rate decision, due to be announced later tonight.
Gold's movement was also influenced by escalating conflict in the Middle East. Iran launched missiles at a U.S. base in Jordan, while the U.S. and Saudi Arabia struck Iran-backed groups in Iraq.
These tensions pushed oil prices back up following a three-day decline. WTI crude traded around US$83 per barrel, a surge of over 5.5%.
The U.S. Dollar Index also remained strong at around 101.45. The dollar was supported by expectations of tighter Fed policy and increased demand for safe-haven assets driven by the conflict.
The Fed is expected to keep interest rates in the 3.50%–3.75% range. However, the market is still pricing in a roughly 31% chance that the central bank will raise rates by 25 basis points.
If the Fed holds rates steady but signals a hawkish stance, gold could face renewed pressure and test levels below US$4,000. Conversely, a more dovish tone could weaken the dollar and pave the way for a gold recovery.
Source: Newsmaker.id
