Gold Edges Higher Ahead of Fed Decision Amid Hawkish Tone Uncertainty
Gold prices rose slightly on Wednesday as investors awaited the US Federal Reserve's interest rate decision and comments from Chairman Kevin Warsh for fresh signals on inflation and monetary policy.
A softer US dollar made gold more affordable for buyers using other currencies, with spot gold increasing by 0.3% to $4,040.63 an ounce, while August COMEX gold futures were little changed at $4,038.90.
The market is pricing in a 68% probability that the Fed will leave interest rates unchanged, with a 32% chance of a 25-basis-point hike and 77% expectations for a September increase.
RHB Investment Bank Bhd maintained its bearish stance on gold, advising traders to retain short positions as selling momentum continued to build, with prices likely to test support at $4,000 before potentially declining towards $3,850 if the downtrend persists.