Traders await the FOMC outcome as geopolitical tensions and hedging activity weigh on gold prices near $2,300.
Gold prices remained under pressure, trading near weekly lows around $2,300 as investors hedged ahead of the Federal Reserve’s interest rate decision. Escalating tensions in the Middle East, including Iran’s recent attack on US forces, added to market uncertainty, though all projectiles were intercepted without damage.
The Fed is widely expected to hold rates steady at 3.50%–3.75%, with up to two dissenters potentially favoring a hike. No updated economic projections will be released, and Fed Chair Jerome Powell is likely to maintain a data-dependent stance without signaling major policy shifts. A hawkish surprise, such as more dissenters or a rate increase, could push gold to new monthly lows.
Conversely, a dovish outcome with no dissenters may trigger a relief rally, as traders reposition for potential stagflation risks. Market focus remains on the Fed’s forward guidance and any hints on future rate adjustments.