Gold Prices Steady Amidst Ongoing Inflation, Geopolitical Risk

Gold prices held steady on Thursday ahead of the North American market open, as traders digested Wednesday's Fed hold and this morning's U.S. GDP and PCE data. The metal is currently trading near $4,067 an ounce, with a range of $4,028.40 to $4,101.10.

The Fed held rates steady, but three policymakers dissented in favor of a 25-basis-point hike, and Chair Kevin Warsh gave little signal that the Committee is ready to declare the inflation fight finished.

This morning's GDP report showed the U.S. economy expanded at a 1.5% annualized rate in the second quarter, down from 2.1% in the first quarter, while June PCE inflation cooled to 3.7% year over year from 4.1% and core PCE eased to 3.3% from 3.4%

The Strait of Hormuz situation is best characterized as open but highly stressed transit under active military, shipping and diplomatic pressure.