Gold prices have remained relatively unchanged on Tuesday, holding on to most of their gains from July despite finishing Monday’s session at a one-week low. The precious metal is awaiting the critical decision from the Federal Reserve, which is expected to be announced on Wednesday.
Price Action
- Gold for August delivery (GC00, -0.12% GCQ23, -0.12%) saw slight gains, reaching $1,962.50 per ounce on Comex.
- Silver futures for September delivery (SI00, +0.46% SIU23, +0.46%) increased by 0.6%, adding 16 cents to reach $24.74 per ounce.
- Platinum for October delivery (PLV23, +1.13%) rose by 1.3%, or $12.70, to $982 per ounce.
- Palladium for September delivery (PAU23, +1.71%) experienced a 1.9% gain, rising by $23.70 to $1,292.50 per ounce.
- Copper for September delivery (HGU23, +1.56%) added 1%, or 4 cents, to $3.86 per pound.
Traders Await Federal Reserve Chairman’s Comments
Investors are eagerly awaiting the remarks of Federal Reserve Chairman Jerome Powell on Wednesday for insights into the central bank’s future plans regarding interest rate hikes.
While the Fed maintained interest rates in June after a series of ten consecutive hikes, it is widely anticipated that rates will be raised by another 25 basis points during this meeting.
The potential for further rate hikes beyond July, such as during the September meeting or later, could potentially impact gold prices. The recent inflation data has indicated a faster-than-expected easing of price pressures, which has been favorable for gold prices.
Jameel Ahmad, chief analyst at Dubai-based brokerage GTC, mentioned the downside risk for gold in the coming months, stating that it would depend on whether the Fed hints at the possibility of further interest rate increases in the United States.
