Fed Minutes Spark Rate Hike Fears Amid Ongoing US-Iran Tensions
Gold futures have faced significant resistance at $4,539.54 and were unable to break through it on Wednesday.
The Federal Reserve's decision to keep interest rates unchanged for a fifth straight meeting in July has given gold some breathing room, with recent economic indicators showing an unexpectedly weak nonfarm payrolls report and moderation in annual consumer and producer inflation.
However, the minutes of the Fed's meeting noted that several participants favored a quarter-point rate hike, citing broad-based price pressures and the need for a more restrictive policy stance to meet the Committee's goals.
The conflict between the US and Iran continues to impact markets, with active negotiations stalled and regional tensions remaining high. Gold futures have formed a 'Bearish Dozi' on their daily chart, indicating continuity of selling pressure and potential tests of key support levels at $4,495.21 and the 9 EMA ($4,553).