Gold Price Holds Steady Ahead of Fed Decision

The gold price is holding steady on Wednesday, July 29, thanks to technical buying and investor anticipation of the U.S. Federal Reserve's decision.

The spot price of gold rose 0.12% to $4,031.84 per troy ounce, supported by dip-buying near the psychologically important $4,000-per-ounce mark.

Nikos Tsabouras of Jefferies attributed the rise to prospects for a diplomatic détente between the U.S. and Iran and market expectations of a pause by the Fed.

The U.S. central bank is widely expected not to change interest rates today, but about 31% of traders are pricing in a 25-basis-point rate hike according to the CME's FedWatch tool.