Gold Holds Firm on Fed Meeting Eve

Gold prices remain steady near $4,053 due to recent inflows into exchange-traded funds (ETFs) and central bank gold purchases. Notably, Poland and China have been purchasing gold in significant quantities. The market is awaiting the Federal Reserve's July 29-30 meeting, where inflation outlook and rate cut expectations will be crucial factors. Positive US economic data, including retail sales and jobless claims, contribute to a cautious sense of optimism.

The Federal Reserve's decision will impact interest rates and have far-reaching effects on the economy. With three consecutive months of ETF inflows, gold has shown resilience in recent times. However, silver faces resistance levels that must be overcome for a bullish shift. Investors closely watch critical support and resistance levels for both metals as they respond to economic signals and central bank actions.