Gold Price Edges Higher Amid Weakened Rate Hike Bets

The price of Gold (XAU/USD) rose to around $4,110 in early Asian trading on Friday as traders reduced their bets on interest rate hikes. The move comes after Federal Reserve Chair Kevin Warsh's press conference, where he reiterated the central bank's commitment to bringing down inflation but offered little clarity on policy.

The US central bank left interest rates unchanged at its current target range between 3.50% and 3.75%, which has led to a decrease in market expectations for a rate hike in September. According to the CME FedWatch tool, the probability of a US rate hike in September is now around 63.4%, down from about 77% before the July Fed meeting.

Despite this shift, ongoing tensions in the Middle East may limit Gold's upside as they could push crude oil prices up and prompt central banks to keep rates elevated for longer.