Fed Decision Dominates Gold Price Ahead of Rate Announcement

The gold price remains stuck in a trading range as investors wait for the Federal Reserve's upcoming rate announcement. The Fed meeting, which concluded on July 29, has left many market participants uncertain about the future direction of interest rates and their impact on gold prices.

Despite a higher dollar keeping prices down, Middle East tensions have cushioned declines in gold. Spot gold was last quoted at $4,029 an ounce, with August COMEX gold futures off about 0.2% at $4,028.

The Federal Open Market Committee's decision to keep rates steady or raise them by a quarter point will be closely watched for any hints on inflation and monetary policy. A hawkish tone from the Fed could lift the dollar and US Treasury yields, putting pressure on non-interest-bearing gold.