Spot gold prices climb to a two-week high amid escalating Middle East conflict and ahead of the Fed’s policy decision.
Gold prices jumped above $4,100 for the first time in two weeks as geopolitical risks in the Middle East intensified. The surge follows 11 consecutive nights of U.S. strikes on Iran and threats to target U.S. and allied interests in the region if nuclear sites are attacked.
The rally contrasts with expectations of a Fed rate hold this week, though traders remain cautious over potential September policy shifts. Earlier, the PBOC set the USD/CNY midpoint at 6.7933, weaker than the 6.7737 estimate, adding to currency volatility.
Oil prices also rose to a five-week high, with Brent crude nearing $120 if Hormuz disruptions persist, according to Goldman Sachs. Equities largely ignored the tensions, with the S&P 500 holding steady as UBS raised its year-end target to 8,100.