Gold Edges Up Ahead of Fed Rate Decision

Gold prices rose slightly on Wednesday as investors awaited the Federal Reserve's interest rate decision. Spot gold gained 0.22% to $4,036.09 an ounce, while U.S gold futures for August delivery remained steady at $4,037.3.

Nikos Tzabouras, senior market analyst at Tradu.com, attributed the increase in gold prices to technical buying around the psychological $4,000 level and prospects of a US-Iran diplomatic off-ramp. However, he warned that any hawkish signals from the Fed could lead to new 2026 lows for gold.

Market participants widely expect the central bank to hold rates steady, but about 31% are pricing in a 25-basis-point hike, according to the CME FedWatch Tool. Traders are expecting a 77% chance of an increase in the central bank's September meeting.