Traders push gold prices higher as US halts strikes and Iran maintains ceasefire ahead of Wednesday’s Fed rate decision.
Gold prices climbed at the start of the week as geopolitical tensions eased. The US paused military strikes after 13 days, while Iran committed to a ceasefire if the US refrains from further action. Markets interpreted this as a potential de-escalation, though sentiment remains fragile amid ongoing risks of renewed conflict.
The Federal Reserve’s rate decision on Wednesday looms large, with expectations for steady rates following softer US inflation data. Fed Chair Jerome Powell is unlikely to signal future moves, leaving September’s meeting data-dependent. Gold’s technical outlook shows resistance at a key downward trendline, with sellers targeting new lows and buyers eyeing a breakout toward 4,500.
Traders remain cautious, balancing geopolitical developments against monetary policy shifts. Any shift in US-Iran tensions or unexpected Fed commentary could drive volatility in gold markets.