Fed's September Delay Could Keep Gold Prices Neutral

Colin Cieszynski, chief market strategist at SIA Wealth Management, expects the Federal Reserve to keep interest rates stable until September at the earliest. This decision could impact gold prices, which may remain neutral for three to six months.

Cieszynski believes that the uncertainty surrounding price stability and the Middle East is creating a great deal of risk around any potential gold positions. He thinks that gold had a massive run, but the sell-down from $5,500 to $4,000 did not completely take out all war concerns.

Looking ahead to Wednesday's FOMC rate decision, Cieszynski expects a restrained Fed for the foreseeable future. He believes that the central bank needs time to see whether June's dip in inflation was a one-off or the start of a positive trend.