Gold prices were largely steady on
Wednesday as investors awaited the U.S. Federal Reserve’s policy
decision and comments from Fed Chairman Kevin Warsh for clues on
inflation and interest rate outlooks.
Spot gold was little changed at $4,029.08 per ounce
by 0301 GMT. U.S. gold futures for August delivery
dipped 0.2 per cent to $4,028.10.
“Gold is very much connected to today’s FOMC meeting…. The
scenario that may see a potential reversal of the recent bearish
bias in gold prices will be the Fed turning to a less hawkish
rhetoric,” said Kelvin Wong, a senior market analyst at OANDA.
The Fed’s policy decision is due at 1800 GMT, while Kevin
Warsh’s comments are scheduled for 1830 GMT.
Market expectations indicate a 70 per cent chance that the central
bank will hold rates steady and a 30 per cent probability of a 25 basis
points hike, according to the FedWatch tool. Markets are pricing
in a 76 per cent chance of an increase in September.
Meanwhile, the Bank of England and the Bank of Japan are
widely expected to keep rates unchanged on Thursday and Friday,
respectively, and caution against rising inflation.
Gold is seen as a hedge against inflation, and higher rates
increase the opportunity cost of holding the non-yielding metal.
On the geopolitical front, the U.S. military said on Tuesday
it intercepted multiple ballistic missiles launched by Iran
towards U.S. forces in West Asia in what Washington cast
as “an attempted surprise attack” by Tehran.
Iran’s Revolutionary Guards later said they fired several
ballistic missiles at a U.S. air base and a U.S. military
Central Command center in Jordan.
Oil prices drifted higher, supported by shrinking U.S. crude
inventories.
Commerzbank on Tuesday lowered its year-end gold price
forecast to $4,500 per troy ounce and said it expects silver to
reach $67 per troy ounce by the end of the year.
Spot silver gained 0.9 per cent to $57.65 per ounce and
platinum inched 0.3 per cent higher to $1,600.40. Palladium
fell 0.7 per cent to $1,261.
Published on July 29, 2026
