Gold (GC=F) August futures opened at $4,331.30 per troy ounce on Tuesday, down 0.5% from Monday’s closing price.
The price of gold edged higher this morning, shifting to $4,365.80 per troy ounce as of 6:49 a.m
ET. Gold prices posted their strongest opening in a week following the U.S. and Iran reaching a preliminary agreement to end hostilities and move toward reopening the Strait of Hormuz. With the details of the deal are still unclear, a formal signing not expected until Friday, the reality that a reopening of the strait could take weeks, and restoring a normal flow of oil could take months, all “provides a complicated backdrop to the Fed meeting” set to kick off today and conclude tomorrow.
There’s currently a 99.4% chance the Fed leaves rates unchanged following the conclusion of its two-day policy-setting meeting tomorrow, according to CME Group’s FedWatch tool, but you can bet inflation and potential rate increases will be a pillar of its discussions over the next couple of days. Higher interest rates tend to push gold prices lower since the precious metal doesn’t pay interest. Current price of gold The opening price of gold futures on Tuesday was 0.5% lower than Monday’s opening price.