XAU/USD trades around $4,020 amid renewed geopolitical tensions and uncertainty over the Federal Reserve’s rate path.
Gold prices held near $4,020 per troy ounce in Asian trading Wednesday, extending losses for a second session. Escalating Middle East hostilities, including an Iranian missile strike targeting US troops, drove investors toward inflation hedges like oil, pressuring gold.
Markets await the Federal Reserve’s policy decision, with rates widely expected to remain unchanged. Traders price in a 30.5% chance of an immediate hike, while a September increase is seen as 76.6% likely, reinforcing expectations for prolonged high borrowing costs.
The rebound in oil prices and persistent rate uncertainty kept sentiment cautious, offsetting gold’s traditional safe-haven appeal.