Investors weigh Middle East tensions and a potential Fed rate hike next week amid gold’s tight trading range near record highs.
Gold August futures traded at $4,063.40 per troy ounce early Tuesday, up from an opening price of $4,013.40, as markets await the Federal Reserve’s interest rate decision next week. The metal has hovered near $4,000 for a week, reflecting uncertainty over geopolitical risks and monetary policy.
Prices remain 0.4% higher than a week ago but 6.2% below last month’s levels, with a 19.8% gain over the past year. The CME FedWatch tool shows a 16.6% chance of a 25-basis-point rate increase, which could pressure gold if yields rise.
Escalating Middle East conflict, including potential U.S. retaliation against Iran, has stoked inflation fears, supporting gold’s safe-haven appeal despite the risk of higher rates.