Gold futures dip to $4,027 as traders await the Federal Reserve’s potential 25 basis point rate hike announcement tomorrow.
Gold August futures opened at $4,083 per troy ounce on July 28, up 0.1% from Monday’s close, before slipping to $4,027 in early trading. The metal has traded below $4,100 since July 14, reflecting cautious sentiment ahead of the Federal Reserve’s two-day meeting concluding Wednesday.
Expectations for a 25 basis point rate hike have risen, with 35.8% of traders now pricing in an increase, up from 25.77% last week. Gold’s one-week performance shows a 2% gain, while its one-year rally stands at 22.7%, down from a 95.6% peak in January.
Oil prices fell nearly 5% over the past five days as U.S.-Iran tensions eased, with airstrikes paused amid diplomatic talks to reopen the Strait of Hormuz.