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Federal Reserve · Gold · Interest Rates · US-Iran Deal
Gold trades sideways around $4,332.60, showing little change, as investors await the Federal Reserve's monetary policy decision and updated economic projections, while also monitoring the interim US-Iran peace deal, which influences the US Dollar.
The Federal Open Market Committee (FOMC) is widely expected to maintain its benchmark interest rate within the 3.5%-3.75% range. Market attention focuses on the updated dot plot and comments from Fed Chair Kevin Warsh for guidance on future interest rate paths.
Analysts indicate the Fed will remove its easing bias and adopt a more cautious tone regarding potential rate cuts, which supports the US Dollar in the near term and generally limits upside for Dollar-denominated assets like Gold. Concurrently, the framework agreement between the United States and Iran, including a 60-day ceasefire and the reopening of the Strait of Hormuz, reduces global energy supply disruption concerns, contributing to recent US Dollar weakness.
However, uncertainties persist regarding the agreement's details and future negotiations on Iran’s nuclear program, limiting market movements. Gold's next significant move depends on the US central bank's message.